Dow plunges and dollar weakens as recession fears grip Wall Street
New York - Global markets on Thursday were severely rattled by President Donald Trump’s historic tariff announcement, which threatens to throw the US and the rest of the world into a recession.
The Dow fell 1,200 points, or 2.82%, pulling back from a session low of 1,570 points in the red. The broader S&P 500 was down by 3.5%, hitting its lowest level since September. The tech-heavy Nasdaq plunged 4.5% and also hit its lowest level since September. All three major indexes were on pace for their worst day since the 2022 inflation crisis.
The S&P 500 was down 11% from its record high in February and on track to close in correction territory. The Nasdaq, which has been in correction, was down 16.8% from its record high in December. The Dow was down 8.9% from its record high in December.
“They’re ignoring every rule of classic micro and macro economics. This is the policymaking equivalent of a suicide bomber,” Michael Block, market strategist at Third Seven Capital, told CNN’s Matt Egan.
If Trump maintains the massive tariffs he announced Wednesday, his unprecedented trade policies will probably cause the US and global economies to both fall into a recession in 2025, JPMorgan analysts said in a note to investors
