The wave of fresh US tariffs announced by President Donald Trump has wiped out nearly $2 trillion from the US stock market, sending Wall Street into a downwards frenzy for the second consecutive day.
All three major US stock market indices were trading lower on Thursday as the reciprocal tariffs announced by US President Donald Trump dampened the Wall Street's sentiments for a second day in a row.
The broader index, S&P 500, closed 4.8% lower at 5,396, while the Dow Jones Industrial Average slumped 1,600 points, or 3.98%, to 40,545.
The tech-heavy Nasdaq Composite ended 6% in the red at 16,550.
At the start of trade, Stocks like Nike Inc. Cl B were down 12.02%, Apple Inc. fell 9.16%, and Amazon.com Inc. dipped 7.11%. Among the companies that rose in early trade were Coca-Cola Co. up 2.24%, and McDonald's Corp. which jumped 1.16%.
Among the 11 S&P 500 sectoral indices, nine were trading higher, whereas two traded lower against the previous day's close. The gains were led by real estate, utilities, healthcare and energy, whereas communications services and consumer staple were the drags.
“This was the worst-case scenario for tariffs and were not priced-into the markets, which is why we are seeing such a risk-off reaction,” Bloomberg quoted Mary Ann Bartels of Sanctuary Wealth as saying.
"If these tariffs stick, the economy is going to slow down. Whether it's a recession or not, it's clear that the economy is headed for a slowdown in the U.S. and around the world. There's no place to hide but the fixed income markets.”
As the US markets opened, spot gold was trading 1.15% lower at $3,099.23, and Brent crude oil was trading 6.56%% lower at $70.03.
The dollar index fell 1.8%, with the British pound rising 1.3% the Japanese yen strengthening by 2.3%.
Bitcoin, the largest traded cryptocurrency, fell by 4.1% to $82,101.21
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