FX.co ★ US Stocks Sink

U.S. stocks took a significant hit on Thursday as investors reacted to President Trump's recent tariff announcement. The S&P 500 dropped by 3.2%, the Nasdaq fell by 4.1%, and the Dow Jones declined approximately 1,060 points. This market reaction followed President Trump's declaration on Wednesday of a baseline 10% tariff on all imports, effective April 5. Further intensifying the situation, tariffs will be higher for specific countries, with China facing 54%, the EU 20%, and Vietnam 46%. Both China and the EU have vowed retaliatory actions, heightening concerns about an extended trade conflict, the potential for a U.S. recession, and increasing inflationary pressures. The sectors most negatively impacted included consumer discretionary, technology, and energy, while consumer staples and utilities remained positive. Companies with global supply chains that heavily depend on imports suffered the most; for example, Apple shares fell by 7.8%, and Nike's shares dropped by 10%. Major cap stocks also experienced notable losses, with Microsoft down 2.7%, Nvidia down 5.4%, Amazon down 6.7%, Meta down 6.6%, Alphabet down 3.6%, and Tesla down 3.5%.