In a dramatic turn of events, the U.S. stock market experienced a catastrophic opening on Friday, with a staggering loss of over $1.5 trillion in market capitalization. This unprecedented downturn was triggered by escalating global trade tensions, particularly following President Donald Trump’s announcement of new tariffs, which have intensified fears of a prolonged trade war with China and other nations.
The Dow Jones Industrial Average plummeted by over 2,200 points, marking a 5.5% decline, while the S&P 500 index fell by nearly 6%, and the Nasdaq Composite, heavily weighted with tech stocks, dropped by 5.8%. This sharp sell-off has pushed the Nasdaq into bear market territory, with a decline of over 20% from its recent peak.
The massive losses in the stock market were in stark contrast to the resilience shown by the cryptocurrency market, with Bitcoin and other digital assets holding strong despite the turmoil in traditional financial markets. The economic uncertainty has heightened concerns about a potential global recession, with analysts warning of severe economic consequences if the trade tensions continue to escalate.
