US Stock Market Drops 10% as Trade Tensions Escalate

President Trump's tariff threats and economic uncertainty drive the S&P 500 into correction territory, wiping $5 trillion in market value.

The S&P 500 has entered correction territory, falling over 10% from its February peak, with the Dow losing 537 points and the Nasdaq dropping 2%.
President Trump's latest tariff threats, including a proposed 200% tax on European wines, have intensified trade tensions and rattled investor confidence.
Investor concerns over potential stagflation, where growth stagnates while inflation remains high, are growing as tariffs disrupt global trade dynamics.
Safe-haven assets like gold and U.S. Treasuries have surged, with gold hitting a record high of nearly $3,000 per ounce and yields on 10-year Treasuries declining.
Despite mild inflation data and a strong labor market, uncertainty surrounding U.S. trade policy and a possible government shutdown continues to weigh heavily on markets.