S&P 500 suffers worst drop since COVID as tariffs rattle traders

U.S. stocks plunged by the most since the depths of the pandemic, erasing $2.

5 trillion in value as President Donald Trump’s drastic new trade tariffs ignited widespread recession fears and left investors seeking out safe-haven bonds as well as the yen. The S&P 500 Index sank 4.8% — its biggest drop since June 2020 — to enter a technical correction again following a brutal global rout in markets from Tokyo to London.



The Nasdaq 100 Index shed 5.4% — its worst day since September 2022 — driven by Apple’s 9% loss, while Nvidia and Tesla both plunged. Everything from sneaker makers to apparel plunged after Trump rolled out new tariffs on crucial manufacturing countries including Vietnam and Indonesia.

Nike slid 14%. Lululemon Athletica, Abercrombie & Fitch and Gap also declined. Trump on Wednesday imposed the steepest American tariffs in a century, saying he will apply a 10% tariff on all exports to the U.

S., with even higher duties on some 60 nations, to counter large trade imbalances with the U.S.

. Some of the worst hit stocks were the riskiest corners of the market — shares of small companies — sending a warning signal for investors. The Russell 2000 Index dropped 6.

6% into what’s called a technical bear market after losing more than 20% compared with its record in late 2021..