Global markets reeled on Thursday following President Donald Trump’s announcement of sweeping new tariffs, as the Dow Jones Industrial Average plunged by more than 1,600 points and nearly $2 trillion was wiped off US market valuations.
The S&P 500 index dropped 4.8 per cent — its worst daily performance since the onset of the COVID-19 pandemic in 2020. The Dow Jones fell by 1,679.39 points, or 4 per cent, to close at 40,545.93, while the tech-heavy NASDAQ composite nosedived 6 per cent, closing at 16,550.61.
The sell-off marked the sharpest decline across Wall Street since the pandemic crash, reflecting investor anxiety over what is widely perceived as a significant escalation in global trade tensions.
Everything from crude oil prices to the value of the US dollar fell, with even safe-haven assets such as gold seeing a retreat.
The Russell 2000 index, which tracks smaller companies, dropped 6.6 per cent and is now more than 20 per cent below its peak.
Despite the chaos in financial markets, President Trump struck an optimistic tone. “The markets are going to boom, the stock is going to boom, and the country is going to boom,” he told reporters as he departed for his Florida golf club.
Asked specifically about the market’s sharp downturn, Trump said, “I think it’s going very well. We have an operation, like when a patient gets operated on and it’s a big thing. I said, this would exactly be the way it is.”
Investors had anticipated Wednesday’s announcement but were startled by the breadth of the tariffs and the administration’s commitment to what is now seen as a long-term strategy rather than a bargaining tool.
The electronics retail giant Best Buy, heavily reliant on imports from countries like China, Malaysia, and India, suffered a 17.8 per cent slump in its stock price.
The S&P 500 closed at 5,396.52, down by 274.45 points. The NASDAQ composite fell by 1,050.44 points.
All three major indices have now posted double-digit losses from their recent record highs, with the S&P 500 down 11.8 per cent from its February peak.
European markets mirrored the decline, with France’s CAC 40 dropping 3.3 per cent and Germany’s DAX falling 3 per cent.
In Asia, Japan’s Nikkei 225 fell by 2.8 per cent, Hong Kong’s Hang Seng dropped 1.5 per cent, and South Korea’s Kospi retreated 0.8 per cent.
The widespread losses illustrate how fragile global investor confidence remains amid heightened geopolitical tensions and shifting trade policies.
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