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10% down in two days. No beuno.
Stock market rout deepens as Dow plunges more than 2,200 points and Nasdaq enters bear market
Stocks continued to tumble in the U.S. Friday as financial markets suffered their biggest two-day drop since 2020.
www.cbsnews.com
Stock market rout deepens as Dow plunges more than 2,200 points and Nasdaq enters bear market
Financial markets ended a tumultuous week with a thud, as stocks tumbled for a second straight day on concerns about the economic fallout from new U.S. tariffs and the prospects of a global trade war.
President Trump's announcement of steep tariffs on Wednesday shocked investors and sent economists scurrying to revise downward their forecasts for U.S. economic growth. Federal Reserve Chair Jerome Powell also warned that the levies — which include a 10% universal duty on all U.S. imports and "reciprocal" tariffs on nearly 90 countries — are likely to dent the economy.
"While uncertainty remains elevated, it is now becoming clear that the tariff increases will be significantly larger than expected," Powell said in a speech Friday in Arlington, Virginia. "The same is likely to be true of the economic effects, which will include higher inflation and slower growth."
The S&P 500 fell 322 points, or nearly 6%, to close at 5,074. The Dow Jones Industrial Average sank 2,231 points, or 5.5%. The Nasdaq Composite slid 963 points, or 5.8%. That put the tech-heavy index in a bear market, or when stocks drop at least 20% from their most recent high.
Tech stocks have flailed this week because of concerns that American tariffs on China — along with countermeasures from Beijing — will hurt the sector, which has been key to driving corporate profits.
"The economic pain that will be brought by these tariffs [is] hard to describe and can essentially take the U.S. tech industry back a decade in the process while China steamrolls ahead," Dan Ives of Wedbush Securities said in a report.
