The Dow Jones suffered a brutal blow today, crashing over 1,500 points as escalating trade tensions between the U.S. and China rattled investors and pushed Wall Street closer to bear market territory.
President Donald Trump’s newly announced 34% tariffs on major U.S. trade partners, particularly China, have set off a chain reaction across global markets. In response, China retaliated with matching levies and targeted U.S. companies with fresh investigations and blacklists. Investors are fleeing equities en masse as recession fears mount.
The Dow Jones Industrial Average was down more than 1,200 points, or 3%, by mid-morning on Friday. That followed a 1,679-point plunge the previous day, bringing the index’s week-to-date losses to 5.3%.
Meanwhile, the Nasdaq Composite fell 4.7%, dragging the tech-heavy index down more than 21% from its December high, officially entering bear market territory. The S&P 500 shed another 3.6%, extending its own weekly drop to 6.4%.
Tech stocks bore the brunt of the storm. Apple dropped another 5% after China imposed new restrictions on U.S. products. Nvidia fell 5%, while Tesla lost 6% amid rising fears of supply chain disruptions. All three companies rely heavily on Chinese manufacturing and markets.
Even traditional Dow stalwarts like Boeing and Caterpillar saw steep losses due to their export exposure.
“The market is pricing in not just tariffs, but a serious risk of global economic contraction,” said Michael Arone of State Street Global Advisors. “Investors are selling first and asking questions later.”
Despite the Labor Department reporting 228,000 new jobs in March, well above Dow Jones estimates of 140,000, traders largely ignored the positive data. The unemployment rate ticked up to 4.2%, adding to the unease.
The CBOE Volatility Index (VIX), often called the market’s “fear gauge,” spiked over 37% to 41.14, its highest level since August 2024.
Meanwhile, bond markets surged as investors fled to safer assets. The 10-year Treasury yield fell below 4%, hitting 3.88% during morning trading.
President Trump took to Truth Social to defend his actions, saying, “My policies will never change,” while urging Americans to invest domestically. However, top analysts like Jim Cramer warned the tariffs may “crash the market” and destroy 401(k) savings.
JPMorgan has increased its U.S. recession forecast to 60%, citing the shock potential of the tariffs. China’s additional moves, including adding DuPont to its “unreliable entities list” and launching an antitrust probe, further shook investor confidence. Shares of DuPont plummeted 12%.
With global markets tumbling and volatility spiking, all eyes are now on how the White House and Beijing respond in the coming days. If no diplomatic off-ramp is found, traders warn this could spiral into a full-scale global trade war with devastating economic consequences.
Dow Jones’ update for today isn’t just a stock market number, it’s a barometer of investor panic. And right now, the pressure is rising fast.
Leo Cruz brings sharp insights into the world of politics, offering balanced reporting and analysis on the latest policies, elections, and global political events. With years of experience covering campaigns and interviewing world leaders, Leo ensures readers are always informed and engaged.
- Source: NEWHD MEDIA
