Wall Street plunged as China retaliated against Trump’s tariffs. The S&P 500 fell 6 per cent, and the Dow was down 2,200 points, sparking global recession fears.
Financial markets nosedived on Friday as Wall Street endured its worst crisis since the early days of the COVID-19 pandemic. The S&P 500 tumbled 6 per cent, and the Dow Jones Industrial Average sank by 2,231 points (5.5 per cent), after China hit back with retaliatory tariffs on US imports, escalating fears of a global recession. The market rout came just days after President Donald Trump announced a 34 per cent tariff on Chinese imports. In response, Beijing imposed a matching 34 per cent tariff on all U.S. goods starting April 10, sending shockwaves through global markets. The Nasdaq composite also fell 5.8 per cent, closing more than 20 per cent below its December record.
Despite a better-than-expected US jobs report released Friday morning—typically a market booster—the data wasn’t enough to halt the slide. Investors remained fixated on the deteriorating trade relationship between the world’s two largest economies.
Trade war fallout hits global markets
Out of the 500 companies in the S&P 500, only 14 ended the day in the green. Shares of multinational corporations heavily reliant on Chinese revenue saw double-digit losses. DuPont plunged 12.7 per cent after China launched an antitrust probe, while GE Healthcare dropped 16 per cent, reflecting its exposure to the Chinese market.
The price of crude oil hit its lowest level since 2021, and commodities like copper also slumped, reflecting fears of weakened global demand.
Powell warns of inflation risks
Federal Reserve Chair Jerome Powell cautioned against rushing to cut interest rates, warning that tariffs could elevate inflation expectations. “Our obligation is to keep longer-term inflation expectations well anchored,” Powell said, suggesting the Fed may avoid aggressive rate cuts despite market pressure.
The 10-year Treasury yield dipped to 4.01 per cent, after briefly sliding below 3.90 per cent in early trading. Bond yields have been falling in recent weeks amid growing concerns over global economic stability.
Trump says it’s a “great time to get rich”
From Mar-a-Lago, Trump appeared unfazed by the market turmoil, telling supporters on Truth Social: “CHINA PLAYED IT WRONG, THEY PANICKED… THIS IS A GREAT TIME TO GET RICH.” He added that negotiations could still bring tariffs down, using Vietnam as an example of a nation willing to cooperate.
Still, analysts remained cautious. Brian Jacobsen, chief economist at Annex Wealth Management, said, “For investors, it felt like an operation without anesthesia. The next surprise might be how quickly tariffs get rolled back—if they do,” as quoted by news agency AP.
Global impact
International markets also suffered:
Germany’s DAX fell 5 per cent
France’s CAC 40 dropped 4.3 per cent
Japan’s Nikkei 225 slid 2.8 per cent
As of Friday’s close:
S&P 500: 5,074.08 (–6 per cent)
Dow Jones: 38,314.86 (–2,231.07)
Nasdaq: 15,587.79 (–962.82)
With recession fears looming, the road ahead will likely depend on how long this tariff standoff lasts—and whether either side is willing to blink.
Also read | Earthquake of 6.9 magnitude strikes Papua New Guinea: US Geological Survey
