S&P 500 loses $2.4T in largest single-day loss since 2020
What's the story
The S&P 500 Index, a benchmark for the US stock market, took a massive hit on Thursday, losing nearly 5% of its value.
This was the index's biggest single-day loss since March 16, 2020, when COVID-19 pandemic dealt a heavy blow to global markets.
The decline was triggered by President Donald Trump's announcement of a sweeping tariff policy, igniting fears of a trade war and economic recession.
The S&P 500 tracks the top 500 publicly traded companies in the US.
Market impact
Wall Street suffers significant losses
The announcement of the tariffs triggered a massive sell-off on Wall Street, marking the largest single-day percentage losses in years.
A combined $2.4 trillion was wiped off from the stock market value of S&P 500 companies.
The Dow Jones Industrial Average also witnessed its worst one-day fall since June 2020, falling nearly 4%.
The Nasdaq Composite saw its largest percentage drop since March 2020, plummeting 6% due to the risk of a global trade war and recession worries in US.
Tariff implications
Trump's tariffs trigger global economic concerns
President Trump's proposed 10% tariff on most US imports, and significantly higher levies (10%-50%) on several other countries, raised fears of a potential global economic upheaval.
Investors reacted by selling off their positions to align with this new economic reality.
The announcement has led to widespread concerns about how other nations might respond to the tariffs, further contributing to market volatility.