Overview

• President Trump’s tariffs on imports from nearly every country raised the U.S. effective tariff rate to its highest level in over a century, shocking investors and triggering a market sell-off.
• The S&P 500 fell 10.5% and the Nasdaq dropped 11.4% over two days, marking their steepest declines since 2020 and capping one of the worst weeks for Wall Street in decades.
• Economists and the Federal Reserve warned that the tariffs could exacerbate inflation and recession risks, complicating efforts to stabilize the economy.
• Tech companies and manufacturers reliant on global supply chains, such as Dell and HP, experienced significant losses, while stocks like Goodyear and Lamb Weston rose due to their domestic focus or recession-proof characteristics.
• President Trump defended the tariffs on social media, encouraging investors to ‘buy low,’ while Federal Reserve Chair Jerome Powell highlighted the larger-than-expected economic risks posed by the policy.