Donald Trump’s Tariffs Spook Wall Street, US Markets Witness Worst Crash Since COVID

On Thursday, April 3, 2025, the US stock market experienced its most severe single-day decline since 2020, triggered by President Donald Trump 's announcement of sweeping tariffs on imports. 

The repercussions were profound across major indices and sectors, marking a tumultuous day on Wall Street.

US Market Crash 
The Dow Jones Industrial Average plummeted approximately 4%, while the broader S&P 500 index saw a staggering 4.8% drop. The technology-focused Nasdaq Composite suffered the most, plunging nearly 6%, reflecting heightened investor anxiety and risk aversion following the tariff revelation.

According to Sudeep Shah, Deputy Vice President & Head of Technical & Derivatives Research at SBI Securities, the market's technical indicators signalled a bearish trend with potential further downside. "Considering the current chart structure of the S&P 500, the index is likely to test the level of 5300, followed by 5180 in the short term," Shah commented, highlighting critical support and resistance levels.

 

Sugandha Sachdev, Founder of SS WealthStreet said that there was a sharp sell-off of around 4% in the major indices.  

She said, “ This was majorly because there was a lot of nervousness in the market as the Trump administration had imposed sweeping tariffs on almost 180 countries. These levies were much higher as compared to the expectations and are leading to a lot of concerns about a wider trade war as other countries will impose retaliatory tariffs. This scenario could potentially push the US economy towards recession,by driving price growth that hurt consumers. This also led to a sharp decline in the dollar index amid de-dollarization trend and a likely decoupling of the US economy from other countries.”
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Sectoral Impact and Corporate Losses
Tech giants bore the brunt of the sell-off, with Meta (Facebook) shares plummeting 8.96%, Amazon dropping 8.98%, and Nvidia falling 7.81%. Apple and Alphabet (Google) also saw significant declines of 7.4% and 3.2%, respectively. Elon Musk's Tesla experienced a notable decrease of 5.47%.

The financial sector, particularly sensitive to economic volatility, mirrored the broader market's downturn. Citigroup and Bank of America shares each fell approximately 10%, while JPMorgan Chase & Co registered a decline of 6.3%.

Economic and Global Reaction
Trump's tariff announcement reverberated globally, prompting widespread market sell-offs across international exchanges. The move, which imposes a baseline tariff rate of 10% on all imported goods effective April 5, elicited varied responses from affected nations and exacerbated existing economic uncertainties.

Future Outlook and Analyst Projections
Analysts anticipate continued market volatility as investors navigate the implications of escalating trade tensions and economic policy shifts.

"The US Dollar Index (DXY) witnessed a sharp correction of 1.69 percent on Thursday and it ended below the 102 level," noted Sudeep Shah, underlining potential challenges ahead. "Going ahead, it is likely to test the level of 100 in the short term," he added, emphasizing ongoing market sensitivity to geopolitical developments.

Thursday's market downturn underscores heightened volatility and investor caution amid evolving economic policies. As Wall Street navigates the aftermath of Trump's tariff announcement, stakeholders brace for potential continued turbulence in the financial markets.