US Stock Market Loses $5 Trillion Amid Trade War Fears

The U.S. stock market experienced significant turmoil this week, with the DJIA plummeting more than 2,200 points, marking its sharpest decline since June 2020. This selloff was largely triggered by escalating trade tensions after President Trump announced a 10% tariff on imports, leading China to respond with a 34% tariff on U.S. goods. The S&P 500 and Nasdaq also suffered heavy losses, with the S&P dropping nearly 6% and entering bear market territory, causing a total market capitalization loss of approximately $5 trillion. Federal Reserve Chair Jerome Powell underscored the economic risks posed by these tariffs, indicating that rate cuts may not sufficiently mitigate the damage. Market confidence has been shaken, particularly in technology stocks, as companies like Apple and Tesla faced steep declines due to their reliance on Chinese markets. Analysts warn that ongoing tariff disputes could lead to further economic repercussions, including slowed growth and increased inflation.