The New York Stock Exchange witnessed a significant downturn as major stock indices like the S&P 500, Nasdaq, and Dow Jones recorded their worst day since 2020. This plunge was triggered by President Donald Trump’s announcement of extensive tariffs, escalating concerns of a global trade conflict that could potentially lead to an economic recession.

The S&P 500 index plummeted by 4.84%, closing at 5,396.52, marking its most substantial single-day decline since June 2020. Similarly, the Dow Jones Industrial Average tumbled by 3.98%, shedding 1,679.39 points to settle at 40,545.93, its worst performance since June 2020. The Nasdaq Composite also experienced a sharp decline of 5.97%, ending at 16,550.61, its largest drop since March 2020. The sell-off was broad-based, affecting over 400 companies listed on the S&P 500.

This market turmoil pushed the S&P 500 to its lowest level since before Trump’s election victory in November, with the index now standing approximately 12% below its peak reached in February. Notable multinational corporations such as Nike and Apple suffered substantial losses, with Nike plunging by 14% and Apple by 9%. Companies heavily reliant on imported goods, like Five Below, Dollar Tree, and Gap, also saw sharp declines. Tech giants like Nvidia and Tesla were not spared either, facing significant drops in their stock prices.

The implementation of a baseline tariff rate of 10% on all countries effective from April 5, with even higher duties expected for nations imposing elevated tariffs on the U.S., exacerbated market concerns. Trump’s comparison of tariffs to a surgical operation aimed at boosting the economy did little to assuage investor fears. The uncertainty surrounding the impact of these tariffs led investors to seek safety in bonds, causing the benchmark 10-year Treasury yield to plummet.

Analysts warned of a potential recession if the elevated tariff rates remained in place, with fears of increased inflation and reduced economic growth looming large. The market reaction to Trump’s tariff policy was overwhelmingly negative, with stock valuations eroding significantly. The broader economic implications of these tariffs, including the potential for higher consumer prices and reduced corporate profitability, cast a shadow of doubt over the future trajectory of the stock market.

In conclusion, the New York Stock Exchange bore witness to a tumultuous day characterized by widespread sell-offs and heightened uncertainty following President Trump’s tariff announcements, signaling challenging times ahead for investors and the global economy.