Wall Street Plunges: Massive sell-off hits as Trump’s tariff plans shake markets

The US stock market plunged on Monday, wiping out trillions in value. Investors panicked as Wall Street questioned Trump’s willingness to risk economic stability with tariffs and other aggressive policies.

The S&P 500 dropped 2.7%, nearing a 9% decline from its recent all-time high. At its lowest, it fell 3.6%, marking its worst performance since 2022. The Dow Jones Industrial Average tumbled 890 points, or 2.1%, after briefly losing over 1,100 points. The Nasdaq skidded 4%, dragging tech stocks deep into the red.

Market volatility intensified. The S&P 500 swung more than 1% in seven of the last eight trading sessions. Trump’s tariff threats fueled investor fears, creating uncertainty that could paralyze businesses and consumers.

Wall Street grew jittery after Trump warned Americans to expect a “little disturbance” from trade wars with Canada, Mexico, and China. Economists raised the likelihood of a US downturn. Bloomberg reported that Trump’s vague economic strategy heightened investor anxiety.

Tech stocks led the sell-off. Exchange-traded funds (ETFs) tied to digital assets and crypto-linked themes suffered the most. Two ETFs betting on Strategy, a Bitcoin-holding firm formerly known as MicroStrategy, plummeted over 30%.

Investors lacked confidence in Trump’s trade policy. Michael Rosen, chief investment officer at Angeles Investment Advisors, said Trump dismantled the international economic system without a clear replacement. He warned that uncertainty would keep investors cautious until a new framework emerged.

As stocks tumbled, investors shifted money into safer assets. Shares of energy, consumer staples, and utilities held firm. These industries, less vulnerable to economic downturns, provided a temporary refuge.

Steve Sosnick, chief strategist at Interactive Brokers, explained the flight to stability. “If you’re a long-only equity investor, you still need to put your money somewhere. When investors see rough weather ahead, they seek shelter in these sectors,” he said.

The market faces ongoing risks. Without a clear trade strategy, investor sentiment may remain shaky. Trump’s unpredictable policies could prolong volatility, leaving businesses and consumers uncertain about the future.