Wall Street Suffers Steepest Losses Since 2020 as Trump Tariffs Spark Global Recession Fears

U.S. stocks took a massive hit on Thursday, with Wall Street posting its worst single-day percentage drop in years, driven by fears of a global recession following sweeping new tariffs imposed by President Donald Trump.

A staggering $2.4 trillion in market value was wiped from S&P 500 companies, with the index plunging 4.84%—its biggest one-day drop since June 2020. The Nasdaq and Dow also posted their steepest declines since the early pandemic days, falling 5.97% and 3.98% respectively.

The selloff was triggered by Trump’s announcement of a 10% blanket tariff on most U.S. imports, along with sharply higher duties on select countries. This move has raised alarm over retaliatory actions from major trade partners, including China and the EU.

The CBOE Volatility Index (VIX), known as Wall Street’s “fear gauge,” surged past 30 for the first time since August, signaling market instability in the days ahead.

Major tech stocks were among the hardest hit—Apple fell 9.2% due to 54% tariffs on Chinese-made products, while Nvidia and Amazon lost 7.8% and 9% respectively. Retailers and banks also slumped, with Nike and Ralph Lauren dropping over 14%, and major banks like JPMorgan and Citigroup losing up to 12.1%.

Investors are now betting on the U.S. Federal Reserve to respond with interest rate cuts, possibly as early as May or June. The upcoming payrolls report and Fed Chair Jerome Powell’s speech are expected to offer key insights into the economic outlook.

Small-cap stocks and the energy sector suffered some of the worst losses, while consumer staples was the only sector in the green, boosted by a strong earnings report from Lamb Weston.