The New York Stock Exchange experienced a significant downturn amidst statements made by the White House regarding President Trump’s tariffs. The US stock market saw notable declines with major indices such as the S&P 500, Dow Jones, and Nasdaq all falling by at least 2%. Tech giants like Alphabet, Amazon, Apple, Microsoft, Meta, Nvidia, and Tesla, collectively known as the “magnificent seven,” witnessed a sell-off, with Tesla’s shares plunging by 15%, marking its worst performance since September 2020.

The market turbulence followed remarks from President Trump and White House officials attempting to reassure investors about the impact of the administration’s trade policies on the economy. Despite concerns about a potential recession, Trump downplayed fears, emphasizing the long-term benefits of the policies. Kevin Hassett, head of the national economic council, expressed optimism, attributing recent job gains in the manufacturing sector to the trade policies, indicating a positive impact on job creation.

While the White House sought to address uncertainties surrounding the trade policies, critics labeled Trump’s tariff strategy as misguided, with some describing the US economy as “very wobbly.” The administration’s aggressive trade stance, including tariff hikes on China and threats against Mexico and Canada, has raised concerns about its potential adverse effects on economic growth. The Atlanta Federal Reserve’s GDP Now tracker forecasted a possible contraction in the economy in the first quarter, primarily due to trade-related issues.

Amidst growing skepticism, Trump’s commerce secretary, Howard Lutnick, remained bullish on the economy, dismissing recession fears and projecting strong growth in the coming years. Despite the ongoing trade tensions and market volatility, the administration continued to defend its policies, citing job creation and future economic prospects as key drivers of its strategy.

As the US stock market grappled with uncertainty and fluctuation, the Trump administration remained steadfast in its commitment to its trade agenda, aiming to address concerns and stabilize market conditions. The evolving dynamics of global trade relations and the impact of tariffs on various sectors continue to shape market sentiment and investor confidence, underscoring the interconnectedness of economic policies and market performance.