U.S. Stocks Suffered Their Worst Drop Since 2020

On Thursday, the Dow Jones Industrial Average dropped by 1,679 points (4%), while the tech-heavy Nasdaq lost 6% and the S&P 500 fell by 4.8%. Significant drops in the stocks of major companies like Nvidia, Apple, and Amazon deepened the losses in Nasdaq.

The dollar also faced intense selling pressure, with the WSJ Dollar Index falling by 1.3%, hitting its lowest level since October. This decline raised concerns about the U.S. economy’s growth outlook.

Trade Wars and Recession Fears

After the announcement of new tariffs, JPMorgan raised the likelihood of the U.S. entering a recession to 60%. Europe and Canada quickly started retaliatory plans. French President Emmanuel Macron stated that the EU might take action against U.S. tech companies, while Canadian Prime Minister Mark Carney announced a 25% tariff on U.S. automobiles in response to Trump’s car tariffs.

Markets Continue Volatile Trend

Despite the market turmoil, Trump argued that the tariffs would benefit the U.S. economy in the long term. “The markets are going to boom,” Trump said, adding that he could impose new tariffs on sectors such as pharmaceuticals and semiconductors.

During this period, oil prices fell by over 6%, while gold investors sold off after its recent rise. Investors warn that volatility in the stock market may persist, and the impact of trade wars could be felt more strongly in the coming months.

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