In a historically bad day on Wall Street, the NASDAQ broke a record with the largest single-day points drop in the market’s 50-year history as investors responded to President Donald Trump’s tariff plan.
Thursday’s NASDAQ figure broke the record as the largest one-day points drop in the market’s history while the Dow figure marked the fifth largest points drop. Both markets suffered their worst days since March 2020 amid the Covid-19 pandemic. The S&P 500 also plunged 274 points, or nearly 5 percent.
Stock futures plummeted overnight Wednesday while global markets sank after Trump unveiled sweeping tariffs against the U.S.’s trading partners. At opening, the Dow dropped more than 1,000 points while the NASDAQ plunged 630 points. Despite a slight midday bump, the markets sharply fell by close.
Some analysts even believe the day could have gone worse. “Markets may actually be underreacting, especially if these rates turn out to be final, given the potential knock-on effects to global consumption and trade,” Sean Sun, portfolio manager at Thornburg Investment Management, told the Associated Press.
But Trump remained confident.
"The markets are going to boom," the president predicted outside the White House Thursday. "The country is going to boom.”
Investors sparked a sell-off a day after Trump announced his tariff plan that puts new levies on goods from nearly every country. Trump and his team have said the policy is necessary to make it fair for American manufacturers. But, experts have warned that his tariffs could have a massive negative impact on the economy. Tariffs are taxes on goods imported into a nation — but it’s often the consumer footing the bill and paying higher prices.
Against the backdrop of sliding markets Thursday, White House officials defended the new tariffs.
“Today, the world starts taking us seriously. Our workforce will finally be treated fairly,” Commerce Secretary Howard Lutnick said in a statement. Hours earlier he told CNN: “The world should stop exploiting the United States.”
Treasury Secretary Scott Bessent issued a statement: “The President’s historic actions will level the playing field for American workers and usher in a new age of economic strength.”
But former treasury secretary under Bill Clinton, Larry H. Summers, said he would have left his post if such a plan was unveiled. “If any administration of which I was a part had launched an economic policy so totally ungrounded in serious analysis or so dangerous and damaging, I would have resigned in protest,” he wrote on X Thursday.
While announcing his sweeping plan, Trump vowed to usher in a “golden age” for America. But Thursday’s stock market lacked any of that luster.
Major companies — including restaurant chains, retailers, and tech giants —that rely on products from around the globe saw their stocks decline as they brace for supply chain disruptions.
Starbucks ended the day down 11 percent while Chipotle fell nearly 4 percent. Shares Gap tanked 20 percent and Macy’s dropped almost 14 percent. Apple plunged more than 9 percent while Amazon dipped nearly the same amount.
Some automakers also endured a rough day as Trump’s 25 percent tariff on imported cars took effect.
Tesla stock dropped almost 6 percent and Stellantis, owner of Jeep, Chrysler, and Dodge, slid nearly 10 percent.
Stellantis announced Thursday it was halting production at its factories in Mexico and Canada. About 900 U.S. employees are expected to be laid off, the automaker said Thursday.
Meanwhile, investors seemed to have found some solace in comfort foods. French fry producer Lamb Weston gained 10 percent while General Mills, Coca-Cola and Kraft Heinz each gained nearly 3 percent.
Thursday’s market plunge didn’t seem to ease others’ fears that Trump’s “Liberation Day” plans could mean Americans may soon be liberated from their retirement savings.
Georgia Taylor, founder of Tailored Wealth, told the Financial Times: “Those near retirement must monitor their pensions closely. Withdrawing during market downturns can deplete funds faster, so seeking advice on a flexible withdrawal strategy is crucial. This highlights the growing need for financial planning to make pensions last longer.”
“The effect on the retirement savings will depend on the years a person has left until retirement,” Maggie Switek, senior director on the research team at the Milken Institute, told The Independent. “For young adults, with a longer time horizon left until retirement, the effects may be offset by future changes in the market, with the stock markets trending upward over longer periods of time.”
Much like Sun, hedge fund manager Bradley Wickens predicted Thursday was just the beginning of a long road ahead for the fallout of Trump’s tariff plan. He told the Wall Street Journal: “The true nature of how negative this is is going to take time to manifest itself during in April and May, as it all dawns on everyone that, ‘Wow, these [tariffs] are here for a long time.’"
The impacts are very much still on the way as some world leaders have already vowed to retaliate.
European Commission President Ursula von der Leyen called Trump’s decision a “major blow” to the global economy, adding: “We are now preparing for further countermeasures, to protect our interests and our businesses if negotiations fail.”
Canadian Prime Minister Mark Carney announced that his country plans to match the U.S.’s 25 percent tariff on imported vehicles: “We take these measures reluctantly. And we take them in ways that is intended and will cause maximum impact in the United States and minimum impact in Canada.”
In the face of tariff panic and market turbulence, asked how he thought things were going, Trump replied: "I think it's going very well.”
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