U.S. stocks took a staggering tumble on Thursday, erasing an estimated $2.5 trillion in market value in what financial analysts are calling the largest single-day drop since 2020.
The Dow Jones Industrial Average plunged 1,679 points (3.98%), the S&P 500 sank by 4.84%, and the Nasdaq Composite posted a steep 5.97% loss—all marking their worst showings in nearly half a decade.
The market drop came after President Trump unveiled a baseline 10% tariff on all foreign countries.
Investors responded sharply to the immediate impact of the tariffs that were announced the previous day, sparking fears of slower global growth and heightened trade tensions.
Notably, the Dow’s final figure of 40,545.93 and the Nasdaq’s closing mark of 16,550.61 reflect the dramatic extent of the sell-off.
Despite the downbeat sentiment on Wall Street, the White House signaled confidence that these tariffs will be a net positive in the long run.
A recent poll by The Associated Press–NORC Center for Public Affairs Research showed that while only about four in ten voters currently approve of the president’s handling of trade and the economy, supporters believe this latest round of tariffs will bolster domestic industries and shift the global marketplace to favor American workers.
Many supporters of President Donald Trump remain optimistic that any short-term volatility will be offset by long-term gains for American workers and domestic industries—particularly in sectors like manufacturing and auto production.
The newly instituted 10% baseline tariff is set to take effect on Saturday, with the higher, country-specific tariffs slated to begin on April 9.
As America charts a new course in international trade under President Trump’s second term, markets will be watching closely to see whether this bold tariff strategy will ultimately deliver on its promise of strengthened U.S. manufacturing and economic growth.