Dow drops 2,200 points Friday, S&P 500 loses 10% in 2 days as Trump’s tariff rout deepens: Live updates
U.S. markets closed with steep losses after trade tensions boiled over. The Dow fell 2,200 points on Friday, and the two-day loss for the S&P 500 hit 10%.
The stock market was pounded for a second day Friday after China retaliated with new tariffs on U.S. goods, sparking fears President Donald Trump has ignited a global trade war that will lead to a recession.
Here’s a tally of the stock market damage:
- , home to many tech companies that sell to China and manufacture there as well, dropped 5.8%, to 15,587.79. This follows a nearly 6% drop on Thursday and takes the index down by 22% from its December record, a bear market in Wall Street terminology.
- The selling was broad with only 14 members of the S&P 500 higher on the day. Major market indexes closed at their lows of the session.
China’s commerce ministry said Friday the country will impose a 34% levy on all U.S. products, disappointing investors who had hoped countries would negotiate with Trump before retaliating.
Technology stocks led the bleeding Friday. Shares of iPhone maker Apple
slumped 7%, bringing its loss for the week to 13%. Artificial intelligence bellwether Nvidia pulled back 7% during the session, while Tesla
fell 10%. All three companies have large exposure to China and are among the hardest hit from Beijing’s retaliatory duties.
Outside of tech, Boeing
and Caterpillar — big exporters to China — led the Dow lower, falling 9% and nearly 6%, respectively.
“The bull market is dead, and it was destroyed by ideologues and self-inflicted wounds,” said Emily Bowersock Hill, CEO and founding partner at Bowersock Capital Partners. “While the market may be close to the bottom in the short-term, we are concerned about the impact of a global trade-war on long-term economic growth.”
China’s efforts to respond to Trump’s tariffs extended beyond reciprocal duties of their own. Beijing added several companies to its so-called “unreliable entities list,” which asserts that the firms have broken market rules or contractual commitments. In addition, China opened an antitrust investigation into DuPont on Friday, sinking shares nearly 13%.
The 10-year Treasury yield fell back below 4% Friday as investors flooded into bonds for safety, pushing prices up and rates lower. The CBOE Volatility index
, Wall Street’s fear gauge surged above 40, an extreme level seen only during rapid market declines.
Trump appeared to be steadfast in the face of the markets backlash to his tariff blitz announced Wednesday evening, posting on Truth Social Friday that his “policies will never change.”
“The fear now as we go into the weekend [is] the trade war escalates, and the US doesn’t back down,” said Jay Woods, chief global strategist at Freedom Capital Markets.
All told, the S&P 500 dropped 9% on the week, its worst week since the breakout of Covid in early 2020.
Stocks close out a brutal week
Stocks closed lower on Friday, capping off a vicious week for investors as a result of President Donald Trump’s tariffs. The wide-ranging duties prompted a retaliatory response from China and stoked concerns of a global economic slowdown that could touch every corner of the globe.
The Dow Jones Industrial Average lost 2,231.07 points, or 5.50%, to close at 38,314.86, while the S&P 500 fell 5.97% to 5,074.08. The Nasdaq Composite pulled back 5.82% to finish the session at 15,587.79.
The 30-stock Dow’s decline was its biggest since June 2020. The S&P 500 notched its biggest decline since March 2020, while the Nasdaq entered a bear market, down more than 22% from its December high.
— Brian Evans
A secular rotation out of ‘Mag 7’ could pose deeper repercussions than questions about economic growth, Fidelity’s Timmer says
A potential recession isn’t as top-of-mind for Fidelity’s Jurrien Timmer as the consequences of a more serious rotation out of the ‘Magnificent Seven’ megacap technology stocks.
“The market is so top heavy that if we are starting a secular rotation out of the Mag 7 into everything else (especially non-US equities), it is likely to have deeper repercussions than whether the economy is growing or not,” Timmer, Fidelity director of global macro, wrote in an X post on Friday.
“The risk/return landscape is so lopsided towards the mega growers that it can become a systemic event for the markets. There’s a lot of catching up to do if the Mag 7 reverts to the ACWI ex-US,” he added.
Tech stocks plummeted on Thursday after President Donald Trump announced a slew of global tariffs, and the ‘Mag 7’ stocks lost more than $1 trillion in collective market cap that day. The group has continued their decline during Friday’s sell-off.
— Pia Singh
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