#MarketAlert | US markets plunge for 2nd straight day as China hits back with tariffs, S&P 500 loses $5T in 2 days amid Trump trade war fears. #TrumpTariffs #RecessionFears #StockMarketCrash #GlobalMarkets pic.twitter.com/jNZ0pYAusS
— ET NOW (@ETNOWlive) April 5, 2025
The stock market faced a turbulent day on Friday as the Dow Jones Industrial Average plunged more than 700 points. Investors grappled with growing concerns about inflation and the potential impact of new tariffs. The sell-off was broad-based, with the S&P 500 shedding nearly 2% and the tech-heavy Nasdaq Composite dropping 2.7%.
Dow Jones, Stock Markets CRASH: Recession is almost here? Trump tariffs tank Dow, NASDAQ, S&P – $5 trillion dustedhttps://t.co/kDFbqOKJM7
— ET NOW (@ETNOWlive) April 5, 2025
Several major technology companies, including Alphabet, Apple, and Amazon, saw their shares decline sharply, putting pressure on the broader market. The latest inflation data from the University of Michigan and the Bureau of Economic Analysis added to the market’s worries. The Consumer Price Index rose more than expected in February, while consumer spending fell short of forecasts.
These figures stoked fears about persistent inflation and its potential to weaken consumer demand. “The market is getting squeezed by both sides,” said Scott Helfstein, head of investment strategy at Global X.
Inflation fears roil stock market
The S&P 500 was down another 5.97% today
It lost 10.5% over the last two days, the worst two-day decline since March 12, 2020 pic.twitter.com/5TfQyhK336
— Nick Timiraos (@NickTimiraos) April 4, 2025
S&P 500 -10.5% in just the past two days and approaching bear market territory (NASDAQ, NASDAQ 100, and Russell 2000 already there)
[Past performance is no guarantee of future results] pic.twitter.com/yJyWSMemS1
— Liz Ann Sonders (@LizAnnSonders) April 4, 2025
He noted that uncertainty surrounding reciprocal tariffs and concerns about a weakening consumer are hitting major sectors like technology and discretionary spending. The market volatility comes amid a series of tariff announcements from the White House, which have rattled investors in recent weeks. President Donald Trump is expected to announce further tariff plans on April 2, leaving investors seeking clarity on the administration’s policies.
In response to the U.S. tariffs, Canadian Prime Minister Mark Carney announced that Canada will implement retaliatory measures. The European Union is also reportedly considering concessions to reduce the impact of reciprocal tariffs. Despite the day’s sell-off and the broader market volatility, Helfstein pointed out that there have not been significant inflows into money markets, suggesting that many investors are attempting to ride out the turbulence.
As the market navigates this uncertain landscape, investors will be closely watching for further developments on the trade front and any signs of a potential economic slowdown. The coming weeks may provide more clarity on the long-term impact of the tariffs and the direction of the market.
