Summary

U.S. stocks suffered a historic collapse as Trump’s sweeping tariffs triggered panic over inflation and recession. The Dow fell 2,231 points, the S&P 500 dropped 6%, and the Nasdaq entered a bear market.

Fed Chair Jerome Powell warned the 10% import tariffs and retaliatory moves from China, including a 34% tariff on U.S. goods, will hurt growth and raise prices.

Economists cut U.S. growth forecasts below 1%, projecting households could face $1,900 in added costs.

The sell-off erased $2.7 trillion in value and marked the worst two-day market drop since March 2020.