Stocks Dive Even Further On Tariffs—Nasdaq Enters Bear Market, Dow’s 2-Day Loss Extends To 2,700 Points

Investors did not get the rebound from Thursday’s historic losses they may have hoped, as stocks again slid considerably as the market digests President Donald Trump’s tariffs while China, the world’s second-largest economy, slapped a 34% retaliatory tariff on American imports.

A traders work on the floor of the New York Stock Exchange on Thursday.

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Key Facts

Thursday was the sharpest daily decline since 2020 for each of the three major U.S. indexes – the Dow Jones Industrial Average (-4%, or 1,680 points, Thursday), the S&P 500 (-5%) and the tech-heavy Nasdaq (-6%) – and things didn’t look much brighter Friday morning in the market.

The Dow fell 2.6%, or about 1,060 points, shortly after markets opened at 9:30 a.m. EDT, extending its two-day loss to 2,700 points, while the S&P and Nasdaq fell 2.8% and 3.1% Friday, respectively, sending the S&P’s decline since Trump’s Wednesday tariff announcement to 8% and the Nasdaq’s to 9%.

All three indexes are down at least 10% from their record levels set a few months ago, residing in correction territory, and the Nasdaq fell into a bear market as it traded more than 20% below its December all-time high, entering its first bear market since 2022.

In addition to the impact of continued negative sentiment from the 10% or greater tariffs on most goods unveiled Wednesday, investors also reacted sourly to the China-led trade countermeasures and Trump’s lack of capitulation, as the president posted Friday to social media his “POLICIES WILL NEVER CHANGE.”

Particularly hard hit were shares of American firms which rely on China for a significant portion of their revenues, as shares of iPhone maker Apple, coffee chain Starbucks and Elon Musk’s automaker Tesla each declined at least 3.5%.

Surprising Fact

Stocks slid to their lowest levels in several months, as the Dow and S&P hit their lowest intraday prices since August and the Nasdaq touched its cheapest level since May.

Big Number

60%. Those are the odds the global economy enters a recession in 2025, JPMorgan economists wrote in a Thursday note to clients.

Oil Prices Crater To 4-Year Low

Crude oil prices sank Friday as recession concerns translated into fears about weaker consumers globally. International benchmark Brent crude prices declined 7% to $65 per barrel, the lowest level since April 2021.

Tangent

The CBOE Volatility Index (VIX), commonly referred to as Wall Street’s fear gauge, is on track to close Friday at its highest level since October 2020, spiking by almost 80% since Wednesday.

Forbes Survey Finds Wall Street Not Happy With Trump

A Forbes poll of 50 influential individuals on Wall Street, including billionaire investors, big-time money managers and economists, found two-thirds of respondents don’t support Trump’s economic policies during his second term, with more than 70% noting his economic policy rollout has not been effective.

Chief Critic

“This is the biggest policy mistake in 95 years,” Jeremy Siegel, a professor at University of Pennsylvania’s Wharton School of Business, Trump’s alma mater, told CNBC on Friday.

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