Wall Street Shaken: Trade War Sparks 1500-Point Dow Dive, Nasdaq Tanks 4%

Wall Street Today: Wall Street was rocked on Friday as a deepening trade war between the U.S. and China triggered a massive selloff. The Nasdaq dropped nearly 4%, while the Dow Jones Industrial Average plunged about 1,500 points.

The sharp fall followed China’s announcement of 34% tariffs on all U.S. imports, set to begin next Thursday—directly in response to President Trump’s new trade measures.

Investors were shaken by the aggressive escalation, with many now expecting the global economy to slow down. Analysts at JPMorgan raised their forecast for a global recession to 60%. Fears of a long, drawn-out trade conflict are growing, especially since both sides show no signs of backing down.

Heavy Selling In US Markets 

The heavy selling wiped out about $6 trillion in U.S. stock market value since Thursday—a potential record loss if it holds. Even a strong jobs report showing 228,000 new jobs last month failed to boost investor confidence, according to WSJ report.

Markets around the world also fell sharply. European stocks dropped over 4%, oil prices sank to their lowest since 2021 at around $62 a barrel, and bond prices surged as investors sought safety, pushing yields lower. The U.S. dollar, after falling Thursday, remained near its weakest point of the year.

Also Read: Trade War Begins: China's Additional 34% Tariffs On US: A Good News For India?

Now Time To Get Rich: Trump

President Trump, however, remained upbeat. “Now is a great time to get rich,” he said, blaming China for panicking and misplaying its hand in the trade battle. He also hinted at future tariffs on items like drugs and microchips, despite expressing a willingness to negotiate. 

In response, President Trump called for an immediate rate cut from the Fed, "This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always ‘late,’ but he could now change his image, and quickly," Trump wrote on his social media platform Truth.

Federal Reserve Chair Jerome Powell acknowledged the difficult road ahead, citing the impact of higher-than-expected tariffs on growth and prices. 

"Energy prices are down, Interest Rates are down, Inflation is down, even Eggs are down 69%, and Jobs are UP, all within two months - A BIG WIN for America. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!," he added.

While markets briefly rallied on news that Vietnam may reduce its tariffs, they soon dropped again, with the Nasdaq nearing bear market territory—down more than 20% from recent highs.

Despite government attempts to calm fears, investors are clearly bracing for more turbulence in the days ahead.