The stock market experienced a sharp decline on Thursday after Donald Trump announced his extensive new tariff program. The Dow Jones Industrial Average dropped 1,204 points to 2.9% during early trading and the S&P 500 declined by 3.3% at that time. The Nasdaq composite suffered the worst decline with a 4.3% drop because tech stocks absorbed the most significant impact.
Apparel companies Nike, Macy’s and Gap experienced double-digit declines because of fresh levies that targeted China and Malaysia along with other major textile-producing countries. The Chinese manufacturing dependence of Apple caused an 8.2% stock drop while Amazon and Nvidia suffered losses of 6.9% and 4.9% respectively.
According to Angelo Kourkafas of Edward Jones the market reaction represented the worst possible outcome because investors were not ready for this development.
The new tariffs have created inflation concerns in the United States while also raising doubts about potential economic slowdowns from counter-tariff responses by affected nations. Market instability worsens because investors believe higher costs will reduce consumer spending.
The market crash indicates growing worries about trade tensions that threaten worldwide economic stability. Market experts predict that the recent announcement will produce ongoing market instability throughout the upcoming days.
