Markets tumble as White House confirms tariffs; S&P 500 hits post-election nadir

US stocks recorded their sharpest one-day losses since 2020 after President Donald Trump revealed sweeping tariffs that raised the risk of a global trade war and potential recession, according to CNBC.
The S&P 500 fell 4.84 percent to 5,396.52, marking its worst single-day decline since June 2020.
The index is now down about 12 percent from its February high and at its lowest level since Trump’s November election victory.
The Nasdaq Composite slid 5.97 percent to 16,550.61—its steepest drop since March 2020. The Dow Jones Industrial Average sank 1,679.39 points, or 3.98 percent, to 40,545.93, also posting its worst performance since June 2020.
The broad sell-off affected more than 400 constituents of the S&P 500. Shares of multinational companies dropped, with Nike falling 14 percent and Apple declining 9 percent.
Companies heavily reliant on imported goods faced steep losses—Five Below dropped nearly 28 percent, Dollar Tree fell 13 percent, and Gap plunged 20 percent.
Technology shares also declined in a broader risk-off shift, with Nvidia down almost 8 percent and Tesla off more than 5 percent.
Markets reacted to the announcement that a baseline tariff rate of 10 percent on all countries will begin April 5.
The US administration also stated that even higher duties will be imposed on nations that levy steeper rates on the US.
CNBC reported that the White House confirmed China’s effective tariff rate will reach 54 percent, factoring in both new reciprocal rates and existing duties.
In response to the plunge, Trump acknowledged the sell-off and compared the tariff implementation to a medical procedure.
“The markets are going to boom. The stock is going to boom. The country is going to boom. And the rest of the world wants to see is there any way they can make a deal,” he said. “An operation, like when a patient gets operated on,” he added.
Investors had expected the tariff rate to start at 10 percent, with a maximum cap of 20 percent. Instead, many of the newly announced rates exceeded those assumptions.
“This was the worst case scenario for tariffs and [they] were not priced-into the markets, which is why we are seeing such a risk-off reaction,” said Mary Ann Bartels, chief investment strategist at Sanctuary Wealth.
She noted, “The big question is if 5,500 can hold on the S&P 500. If it cannot hold, we may see another 5–10 percent downside, which could likely point to a bottom of 5,200–5,400.”
Uncertainty over Trump’s continued tariff announcements has weighed on markets since late February.
That uncertainty pushed the S&P 500 into correction territory, defined as a 10 percent drop from a record high. Weak economic data has emerged amid these developments, adding pressure to stocks and fuelling recession concerns.
In search of safety, investors shifted toward bonds. The benchmark 10-year Treasury yield dropped to as low as 4 percent as bond prices climbed.
JPMorgan economists stated that a recession now appears likely if the announced tariffs are sustained and not lowered through negotiations.