The U.S. stock market suffered a major blow following the announcement of new tariffs introduced by former President Donald Trump. The New York Stock Exchange plunged over 1,400 points, reflecting a sharp 3.35% decline, while the S&P 500 dropped by nearly 4.8%, wiping out billions of dollars in market capitalization in just a single day. This drop marked one of the steepest market selloffs since the COVID-era, triggering widespread concern among investors and economists.
The S&P 500 index, which had been showing signs of strength earlier this month, fell to an intraday low of 5,399.20. This abrupt move downward came after a steady stream of profit-taking turned into panic selling, as market participants reacted strongly to the newly imposed trade barriers. The volume and velocity of the selloff point to a high degree of institutional liquidation, signaling a broader risk-off sentiment spreading across sectors.
The newly announced tariffs, aimed at tightening control over imports in manufacturing and tech, were met with backlash from market analysts who fear it could slow down economic momentum. Many believe the move has disrupted global investor confidence, fueling fears of a new wave of trade disputes that could lead to inflationary pressure and declining corporate earnings in key sectors.
Stock indices in the U.S. have now dipped to their lowest levels in the last five years. This dramatic fall underscores just how sensitive markets are to policy shifts, especially in uncertain economic climates. With no immediate signs of recovery, traders and long-term investors alike are bracing for continued volatility unless clear direction is offered by economic policymakers.
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