NEW YORK (AP) — Wall Street’s worst crisis since the COVID-19 pandemic took a dramatic turn on Friday, with markets plunging into deeper turmoil.
The S&P 500 dropped 6% after China mirrored U.S. President Donald Trump’s substantial tariff increase earlier this week, escalating an ongoing trade conflict. This move heightened concerns over the potential for a global recession. Even a stronger-than-expected U.S. job market report, typically seen as a bright spot in the economy, failed to stem the market’s downward spiral.
The sharp decline capped off the worst week for the S&P 500 since March 2020, when the pandemic caused widespread economic disruption. The Dow Jones Industrial Average plummeted by 2,231 points, or 5.5%, while the Nasdaq Composite sank 5.8%, now sitting more than 20% below its record high from December.
The trade war’s toll on financial markets has been felt across the board, with few sectors seeing gains. On Friday, only 14 of the 500 companies in the S&P 500 saw their stock prices rise. Meanwhile, the price of crude oil fell to its lowest point since 2021, and other key commodities such as copper also saw declines. The downturn in these essential resources reflects growing fears that the trade conflict will undermine global economic growth.
The latest wave of market losses came swiftly after China’s official response to the U.S. tariffs. The Ministry of Commerce in Beijing announced it would impose a 34% tariff on all U.S. imports starting April 10, matching the U.S. tariff rate on Chinese goods. As the world’s two largest economies, the actions of the U.S. and China have a far-reaching impact on global markets.
As the trade war intensifies, concerns about its broader economic consequences continue to mount.
