The U.S. stock market tanked Thursday morning. President Donald Trump’s harsh new tariffs sent shockwaves through global markets.

The S&P 500 dropped 3.3% early in trading. At the same time, the Dow Jones plunged 1,204 points, or 2.9%. Even worse, the Nasdaq crashed 4.3%.

Everything fell—tech, oil, and real estate. Even gold, which usually climbs in turmoil, slipped. The U.S. dollar dropped in value, too.

Trump Goes Further Than Expected

Many expected tariffs. But Trump delivered much more. His announcement came late Wednesday. By morning, markets were reeling.

Mary Ann Bartels of Sanctuary Wealth said this was “the worst-case scenario.” A minimum 10% tariff will hit all imports. Goods from China and the European Union face even higher taxes.

UBS warned that U.S. growth could drop by 2%. Inflation could soar close to 5%. Those numbers shook investor confidence across the globe.

Fear Of Recession Grows

Because of the tariff shock, investors are bracing for recession. UBS strategist Bhanu Baweja said the impact could feel like “economic whiplash.”

He’s not alone. Many on Wall Street now believe Trump’s plan isn’t about short-term leverage. It may be part of a bigger, long-term push.

The goal? Bringing back U.S. manufacturing. But the cost may be global economic pain.

Markets May Still Be Too Calm

Despite big drops, some believe Wall Street isn’t panicking enough yet. Sean Sun from Thornburg Investment called Trump’s move “just the opening shot.”

If the tariffs remain, prices may drop far more. Company profits could collapse. Trade could slow across the board.

Federal Reserve Under Pressure

As markets fall, all eyes turn to the Federal Reserve. Will it slash interest rates again?

So far, the Fed has stayed on pause. But Thursday’s bond market said otherwise. The 10-year Treasury yield dropped to 4.02%. In January, it was nearly 4.80%.

Lower rates help spending and borrowing. Still, they also push inflation higher. That’s a serious problem now.

The Stagflation Threat Rises

Stagflation—low growth with high inflation—is back in the headlines. The Fed has no easy solution for it. Cutting rates might backfire. But doing nothing could hurt worse.

And with tariffs pushing prices higher, the pressure keeps mounting.

Jobs Data Shows Some Hope

Despite the chaos, job numbers still look strong. On Thursday, unemployment claims dropped. Fewer Americans filed for jobless benefits.

It’s a rare bright spot. Still, investors remained skittish. Roughly 75% of S&P 500 stocks fell during the day.

Big Names Lead The Drop

Major companies suffered huge losses. Nike sank 12%. The reason? Most of its products are made overseas.

United Airlines fell 10.6%. Fewer travelers mean fewer profits. Dollar Tree tumbled 8.5% as shoppers feel squeezed.

Even top tech players took a hit. Nvidia fell 4.6%. It’s already down 22% this year, despite doubling last year.

Stock Market Crashes Go Global

It wasn’t just Wall Street. Markets dropped worldwide. The stock market crash hit every region.

France’s CAC 40 fell 2.9%. Germany’s DAX lost 2.1%. In Asia, Japan’s Nikkei 225 sank 2.8%. Hong Kong’s Hang Seng slid 1.5%, and South Korea’s Kospi dropped 0.8%.

Every major economy felt the shock.

Investors Left In Limbo

For now, everything depends on what Trump does next. If he pushes forward with these tariffs, more pain may come.

The phrase stock market crashes is no longer a warning—it’s the reality. The global economy is now standing on a cliff.