By CNBC
Stocks plummeted Thursday, sending the S&P 500 back into correction territory for its biggest one-day loss since 2020, after President Donald Trump unveiled sweeping tariffs, raising the risk of a global trade war that plunges the economy into a recession.
The broad market index dropped 4.84% and settled at 5,396.52, posting its worst day since June 2020. The Dow Jones Industrial Average tumbled 1,679.39 points, or 3.98%, to close at 40,545.93 and mark its worst session since June 2020. The Nasdaq Composite plummeted 5.97% and ended at 16,550.61, registering its biggest decline since March 2020. The slide across equities was broad, with more than 400 of the S&P 500′s constituents posting losses.
Thursday’s moves sent the S&P 500 to its lowest level since before Trump’s election win in November. The benchmark now sits about 12% from its record close touched in February.
Shares of multinational companies tumbled. Nike and Apple dropped 14% and 9%, respectively. Big sellers of imported goods were among the hardest hit. Five Below lost nearly 28%, Dollar Tree tumbled 13% and Gap plunged 20%. Tech shares dropped in an overall risk-off mood, with Nvidia off almost 8% and Tesla down more than 5%.
A baseline tariff rate of 10% on all countries goes into effect April 5. Even bigger duties against countries that levy higher rates on the U.S. will be charged in coming days, according to the administration.
