Today, the major indices of Wall Street are “plummeting” as sweeping tariffs announced by US President Donald Trump reignite fears of a trade war and threaten the course of the global economy.

By 8:00 PM Greek time, the Dow Jones was down by 1,254 points or 2.97%, reaching 40,970 points. The S&P 500 was experiencing a sharp drop of 3.75% to 5,458 points and was on track for its largest daily loss since 2022. A massive sell-off in tech stocks has caused the Nasdaq to decline by 4.86% to 16,744 points, as investors flee from Big Tech, which is perceived as high-risk.

Noteworthy is the freefall of the Russell 2000, which has now become the first US index to officially enter a bear market. This marks a dramatic reversal in the prospects of the small-cap index, which had previously led the post-election market rally, as small-cap companies were seen as the big winners of the developmental strategy that the new president was expected to follow.

Ultimately, as reported by newmoney.gr, things did not go as investors had hoped, with the Russell 2000 losing more than 5% today, bringing its losses from its last peak to 21%, officially entering bear market territory. The Volatility Index (VIX), known as the “fear gauge” of Wall Street, surged to its highest level in three weeks, reaching 28.36 points.

Stocks of companies dependent on global trade are seeing the largest losses. Nike, Lululemon, and Deckers plummeted by as much as 12%, following the imposition of tariffs on countries that serve as production hubs like Vietnam. Apple dropped by 8.69%, marking one of its worst sessions in history, with its market capitalization shrinking by nearly $300 billion, while Amazon, Nvidia, and Tesla are also down by more than 6%.

Energy stocks like Exxon Mobil and Chevron fell by 3.8% and 5% respectively, following a 7.1% drop in Brent crude prices, due to the tariffs and the acceleration of production by OPEC+.

The combination of geoeconomic instability and fears of a recession has sparked a strong flight to safe-haven investments. The yield on the US 10-year bond fell to a five-month low, approaching the psychological threshold of 4%, with similar movements observed in Germany, the UK, Japan, and Australia. The yen and Swiss franc strengthened, while gold hit a new historic high.