US Market Crash: Wall Street Takes A $5 Trillion Hit As Trump’s Tariff Wars Escalate

The US equity market cap of $5 trillion was wiped out in two days, bringing the total market cap lost since Trump’s inauguration in January to nearly $8 trillion. This staggering loss marks one of modern history's most dramatic market meltdowns, as Wall Street reels from an escalating trade war between the U.S. and China.

The sharp selloff intensified Friday after China retaliated against new U.S. tariffs by announcing its 34% levy on all American products, set to begin April 10. The move sent shockwaves through global markets and deepened investor fears of a looming recession.

S&P 500 Fell Nearly 6%

The S&P 500 fell nearly 6% on Friday alone, bringing its weekly loss to 9%—the worst since the COVID-19 outbreak in March 2020.

Despite a better-than-expected U.S. jobs report that showed continued strength in hiring, markets could not recover from the impact of the trade tensions. Only 14 companies in the S&P 500 closed higher, highlighting the widespread nature of the selloff.

Dow Jones And Nasdaq Composite

The Dow Jones Industrial Average plunged 2,231 points, or 5.5%, on Friday, following a 1,679-point fall the previous day—marking the first time it has lost over 1,500 points on back-to-back sessions.

The Nasdaq Composite, heavily weighted with tech stocks, tumbled 5.8% on Friday and is now down more than 22% from its December high, officially entering bear market territory.

Also Read: US Market Bloodbath Worsens as China Strikes Back with 34% Tariffs on American Goods

Tech Stocks Worst Hit

Technology stocks were hit hardest, given their deep ties to Chinese markets. Apple and Nvidia both dropped 7%, while Tesla fell 10% amid fears of declining sales and production hurdles in China. Major exporters like Boeing and Caterpillar also posted steep losses of 9% and nearly 6%, respectively.

Meanwhile, DuPont’s shares collapsed 12.7% after China announced an anti-trust investigation into one of its subsidiaries, seen as part of its retaliation against the U.S.

Commodity Markets 

Commodity markets mirrored the equity selloff. Oil prices sank to their lowest levels since 2021, and copper, a key barometer for global industrial activity, also declined.

According to Reuters, Economists at Barclays now reckon U.S. inflation will exceed 4% this year while GDP will contract in the fourth quarter, a move “consistent with recession”. The rest of the world won’t escape the pain. Economists at Citi say up to one percentage point will be knocked off eurozone growth this year, pushing the bloc to the brink of recession, while China could suffer a similar blow to its GDP growth, which they say was already slowing to sub-5%.