Full Market Coverage HereMajor Indexes Suffer Worst Single-Day Losses Since 2020
The U.S. stock market is experiencing significant turmoil today as investors continue to react to President Donald Trump’s sweeping “Liberation Day” tariffs announced earlier this week. Major indexes recorded their worst single-day performance since the early days of the coronavirus pandemic in 2020, with the sell-off extending into Friday’s trading session.
As of the latest market data, the Dow Jones Industrial Average (DJI) collapsed 4% or 1,679.39 points to close at 40,545.93 on Thursday. The tech-heavy Nasdaq Composite finished at 16,550.61, plummeting 6% or 1,050.44 points, while the S&P 500 dropped 4.8% or 274.45 points to finish at 5,396.52.
Trump’s Tariffs Spark Global Market Reaction
The market rout follows President Trump’s implementation of “Liberation Day” tariffs, which include a baseline 10% tariff on all imports starting April 5. More concerning to investors is that tariff rates could increase to as high as 54% on countries depending on what rate those governments levy duties on U.S. exports.
Global markets have also been severely impacted, with the Stoxx Europe 600 index down more than 2%, while Japan’s Nikkei and Hong Kong’s Hang Seng closed down 2.8% and 1.5%, respectively. China has announced retaliatory measures, imposing 34% tariffs on U.S. imports starting April 10.
Economists and financial experts are highly concerned about the effect of these tariffs on U.S. economic growth, especially on inflation, which is already elevated and remained sticky despite a 1% cut in the benchmark interest rate by the Fed last year. Market participants fear a near-term recession and, in the worst case, stagflation in the U.S. economy.
Tech Stocks Lead the Decline
The technology sector has been hit particularly hard in this market downturn. The Technology Select Sector SPDR (XLK) tumbled 6.8% on Thursday.
– Nvidia (NVDA) is down 7.81% today, continuing its negative trend for 2025 with an 18.3% loss year-to-date.
– Tesla (TSLA) has dropped 5.47% today, extending its year-to-date losses to 34.7%, making it the worst performer among the Magnificent Seven.
– Apple (AAPL) is showing relative stability today with a modest gain of 0.1%, but remains down 13% for the year.
– Microsoft (MSFT) has gained 1.4% in today’s trading but remains far below its 50- and 200-day moving averages, with a 10.1% loss for 2025.
Other notable movers include Intel (INTC) with a gain of 2.05%, Ford Motor Company (F) down 6.01%, and Lucid Group (LCID) falling 3.33%.
Economic Data and Upcoming Market Events
Mixed economic data has added to market uncertainty. The Department of Labor reported that initial claims remained unchanged at 219,000 for the week ended March 29, missing the consensus estimate of 225,000. The Institute of Supply Management reported that services PMI for March came in at 50.8%, missing the consensus estimate of 52.9% and February’s reading of 53.5%.
Looking ahead, investors should monitor several key upcoming events:
– First-quarter earnings season is set to begin during the second full week of April, led by banking giants JPMorgan Chase (JPM) and Wells Fargo (WFC).
– Analysts at FactSet estimate a year-over-year earnings growth rate of 7.3% for S&P 500 companies, which would mark the seventh straight quarter of year-over-year earnings growth.
– Major companies reporting earnings later this month include Amazon (AMZN), Apple (AAPL), and Nvidia (NVDA).
– The European Central Bank’s interest rate decision on April 17 will be closely watched for its potential impact on global markets.
Market Outlook and Investor Sentiment
The fear-gauge CBOE Volatility Index (VIX) surged 39.6% to 30.02 on Thursday, marking its highest closing level since August 5, 2024, indicating extreme market anxiety.
As markets continue to digest the implications of Trump’s tariff policies, investors are reassessing their portfolios and risk exposure. The Consumer Discretionary and Energy sectors have been particularly hard hit, with the Consumer Discretionary Select Sector SPDR (XLY) and the Energy Select Sector SPDR (XLE) tumbling 6% and 7.9%, respectively.
With global retaliatory measures already being announced and concerns about inflation and economic growth mounting, market volatility is expected to remain elevated in the near term. Investors should stay vigilant and consider diversification strategies to navigate this challenging market environment.