US stocks suffer biggest drop since 2020 as Trump tariffs spark recession fears

Stocks dropped sharply on Thursday, with the S&P 500 falling into correction territory after President Donald Trump announced new tariffs. This raised concerns about a potential global trade war, which could lead to a recession. The S&P 500 lost 4.84%, its biggest one-day drop since June 2020, closing at 5,396.52. The Dow Jones Industrial Average dropped 1,679.39 points (3.98%), ending at 40,545.93, marking its worst day since June 2020. The Nasdaq Composite fell 5.97%, closing at 16,550.61, its biggest drop since March 2020.

The market decline affected many companies, especially multinational ones. Nike dropped 14%, and Apple fell 9%. Retailers like Five Below, Dollar Tree, and Gap were hit hard, losing up to 28%. Tech stocks also fell, with Nvidia down nearly 8% and Tesla dropping more than 5%.

Thursday’s losses took the S&P 500 to its lowest level since before Trump’s election in November, now about 12% below its record high from February. A 10% tariff on all countries will begin on April 5, with even higher tariffs planned for countries that charge more on U.S. goods.