The stock market crash intensified Friday after China slapped fresh tariffs on all U.S. imports. Investors panicked, fearing President Trump has kicked off a global trade war that could tip the world into recession.
Wall Street didn’t just slide. It crumbled.
The Dow Jones Industrial Average plunged 2,231 points, or 5.5%, to close at 38,314.86. It marked the biggest single-day loss since June 2020—back when the pandemic first rocked the markets.
Even worse, Thursday saw a 1,679-point drop. This back-to-back plunge is the first time ever that the Dow has lost more than 1,500 points on two consecutive days.
The stock market crash had gained steam Friday after China hit back at President Trump’s sweeping tariffs. Investors panicked as fears of a global recession grew louder.
The Dow Jones Industrial Average plunged over 1,200 points, dropping 3% by mid-day. That followed Thursday’s brutal 1,679-point dive.
The S&P 500 tumbled 3.6%, after falling nearly 5% the day before. Meanwhile, the Nasdaq sank another 4.7%. If it closes at that level, it’s officially down over 21% from its December high—marking a bear market.
China Fires Back With Massive Tariff Blow
China’s Commerce Ministry announced Friday it will slap a 34% tariff on all U.S. imports, matching Trump’s own move unveiled just two days earlier.
This latest move escalates the already boiling trade war. Now, investors fear the conflict may spin out of control, triggering a full-blown global recession.
Tech companies with ties to China took the biggest hits.
Tech Giants Lead Market Meltdown
Apple shares dropped more than 3%, capping off a devastating 10% slide this week. Nvidia fell 5% on Friday alone. Tesla also took a beating, sliding 6%.
All three companies rely heavily on sales or production in China. That exposure has now turned into a massive liability.
Outside of tech, industrial heavyweights like Boeing and Caterpillar also plummeted. Their large export volumes to China make them vulnerable to retaliation.
Traders Panic, Dump Stocks Across the Board
Investors wasted no time reacting. Traders sold fast and asked questions later. Fear dominated trading floors across the globe.
Michael Arone, chief investment strategist at State Street, didn’t sugarcoat the mood.
“The Trump administration may be playing a game of chicken,” he said. “But market participants aren’t waiting around for results.”
They’re dumping stocks—and fast.
China’s Retaliation Goes Beyond Tariffs
In a move that shocked analysts, China also added several U.S. firms to its “unreliable entities list.” That blacklist accuses companies of breaking contracts or market rules.
Beijing then announced a surprise antitrust investigation into DuPont. The chemical giant saw its shares nosedive 12% on the news.
It’s clear China is targeting more than just goods. They’re going after reputations and long-term operations too.
Investors Flee to Bonds as Recession Fears Surge
With stocks in free fall, investors ran for cover. U.S. Treasury bonds saw a rush of buying as the panic intensified.
The 10-year yield dropped below 4% for the first time in weeks. That signals growing concern that the economy could stall—or worse.
Late Thursday, JPMorgan raised the odds of a U.S. recession to 60%. Just days earlier, they had it at 40%.
Clearly, confidence is fading fast.
Trump Plays Golf as Markets Crumble
As Wall Street plunged deeper into the red, President Trump arrived at his golf club in West Palm Beach, Florida. He made no public comment on the stock market crash.
Instead, he planned to attend a private candlelight dinner at his Mar-a-Lago resort.
Earlier in the day, he tried to shift attention by celebrating strong job numbers. But the upbeat tone didn’t calm markets or investors.
Political Chaos Adds to Market Jitters
Many analysts now fear that Trump’s aggressive trade tactics could backfire politically. With the election year heating up, economic instability may shake his support base.
For now, Trump appears unfazed. But on Wall Street, the alarms are blaring.
Stock prices have dropped sharply for two straight days. Market volatility is rising. And international tensions are growing by the hour.
Experts Warn Crash Could Get Worse
Some analysts fear the worst is yet to come. The damage may spread if neither side steps back.
With global economies deeply intertwined, the fallout won’t be limited to the U.S. or China. Europe, Asia, and emerging markets could all feel the pain.
If the tariffs remain in place, analysts warn the crash could turn into a global bear market.
Recession Risk Now Front and Center
For months, investors brushed off concerns. They bet that talks would cool things down. Now, reality is setting in.
With both countries digging in, there’s no resolution in sight. Consumers may soon face higher prices. Companies could start cutting jobs.
If spending slows and confidence crumbles, a recession might not be far behind.
Stock Market Crash Wipes Out Billions
In just two days, U.S. markets have lost hundreds of billions in value. Major indexes are now well below their highs. Tech stocks have been gutted. Blue-chip companies are bleeding.
The crash is real—and it’s getting worse.
As China retaliates and Trump digs in, the world is watching. The stock market crash is no longer just a headline. It’s a warning of what could come next.
