[New York Stock Market] 5% Drop Amid 'Trump Tariff Bomb'... Worst Since Pandemic

On the 4th (local time), the US New York stock market closed with a simultaneous drop of over 5%. This is the largest decline since the COVID-19 pandemic outbreak in 2020. The uncertainty increased due to the Trump administration's announcement of reciprocal tariffs and China's retaliatory measures, compounded by concerns over a global economic recession.

On the 4th, the Nasdaq index is displayed in the dealing room of the Hana Bank headquarters in Jung-gu, Seoul. The US stock market plummeted following the announcement of reciprocal tariffs by US President Donald Trump. April 4, 2025, Yonhap News Agency

On that day, the Dow Jones Industrial Average closed at 38,314.86, down 2,231.07 points (-5.50%) from the previous session. The Standard & Poor's (S&P) 500 index also plunged 322.44 points (-5.97%) to 5,074.08, and the Nasdaq Composite Index fell 962.82 points (-5.82%) to 15,587.79.

The S&P 500 recorded its largest daily drop in five years since March 16, 2020 (-12%), when COVID-19 fears first fully hit. The Nasdaq index has fallen more than 20% from its peak on December 16 last year, and notably dropped over 11% in just two days on the 3rd and 4th.

Since President Trump announced reciprocal tariffs targeting major trading countries on the 2nd, the US stock market experienced the worst two-day plunge. Furthermore, the trade war that had been anticipated became a reality when the Chinese government announced retaliatory tariffs of 34% on all US imports. President Trump condemned China's countermeasures but warned, "My policy will never change."

The tariffs imposed by the US on major trading partners are expected to ultimately cause inflation in the US economy. Although the March employment data released that day exceeded market expectations, it was insufficient to dispel concerns about a recession caused by the tariff onslaught.

Apple, the largest company by market capitalization, and Nvidia, the leading AI chip stock, each plunged 7.3% that day, while Tesla, led by Elon Musk, dropped as much as 10.5%. Meta Platforms, the parent company of Facebook, also fell 5%.