Wall Street ends with heavy losses on fears Trump tariffs will trigger recession

Record ID: 1988073

  • Title: Wall Street ends with heavy losses on fears Trump tariffs will trigger recession
  • Date: 3rd April 2025
  • Summary: ALLENTOWN, PENNSYLVANIA, UNITED STATES (APRIL 3, 2025) (REUTERS) (SOUNDBITE) (English) CFRA RESEARCH, CHIEF INVESTMENT STRATEGIST, SAM STOVALL, SAYING: “Well, the market is down today because the tariff announcement ended up being more extreme than most investors had anticipated. And because of it being extreme, investors are now worried about what the reciprocal tariffs w
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  • Keywords: DOW NASDAQ S&P 500
  • Location: VARIOUS
  • City: VARIOUS
  • Country: US
  • Topics: Economic Events,North America,Equities Markets
  • Reuters ID: LVA003407003042025RP1
  • Aspect Ratio: 16:9
  • Story Text:Wall Street benchmarks slumped on Thursday (April 3), ending with the largest one-day percentage losses in years, as U.S. President Donald Trump's sweeping tariffs ignited fears of an all-out trade war and a global economic recession.
    Investors fled from risky assets, seeking the safety of government bonds, after Trump slapped a 10% tariff on most U.S. imports and much higher levies on dozens of other countries.
    The tariffs, poised to disrupt the global trade order, highlight a stark shift from just a few months ago when the promise of business-friendly policies under the Trump administration propelled U.S. stocks to record highs.
    Investors sold positions to reflect the new economic reality, with concerns about how other countries would react to Trump's Rose Garden proclamations.
    China vowed retaliation, as did the European Union, which faces a 20% duty. South Korea, Mexico, India and several other trading partners said they would hold off for now as they seek concessions before the targeted tariffs take effect on April 9.
    The coming days are expected to be volatile, as events unfold and the full effect of Trump's economic actions start to feed through into the wider economy. The CBOE Volatility index, known as Wall Street's fear gauge, touched a three-week high.
    The S&P 500 lost 274.45 points, or 4.84%, to end at 5,396.52 points, while the Nasdaq Composite dropped 1,050.44 points, or 5.97%, to 16,550.61. The Dow Jones Industrial Average fell 1,679.39 points, or 3.98%, to 40,545.93.
    U.S. stocks have lost ground since Trump took office in January, with the S&P 500 and the Nasdaq dropping 10% from record highs last month, marking a correction, as investors priced in the economic damage from the tariffs.
    Traders are ramping up expectations for the Federal Reserve to cut interest rates four times this year, starting with a quarter-point cut in June.
    (Production: Brendan McDermid, Lisa Bernhard, Sheryl Peña, Kyoko Gasha)
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