Dow drops 2,200 points Friday, S&P 500 loses 10% in 2 days as Trump’s tariff rout deepens

Dow drops 2,200 points Friday, S&P 500 loses 10% in 2 days as Trump's tariff rout deepens

The stock market was pounded for a second day Friday after China retaliated with new tariffs on U.S. goods, sparking fears President Donald Trump has ignited a global trade war that will lead to a recession.

Here’s a tally of the stock market damage:

The Dow Jones Industrial Average dropped 2,231.07 points, or 5.5%, to 38,314.86 on Friday, the biggest decline since June 2020 during the Covid-19 pandemic. This follows a 1,679-point decline on Thursday and marks the first time ever that it has shed more than 1,500 points on back-to-back days.

The S&P 500 nosedived 5.97% to 5,074.08, the biggest decline since March 2020. The benchmark shed 4.84% on Thursday and is now off more than 17% off its recent high.

The Nasdaq Composite, home to many tech companies that sell to China and manufacture there as well, dropped 5.8%, to 15,587.79. This follows a nearly 6% drop on Thursday and takes the index down by 22% from its December record, a bear market in Wall Street terminology.

The selling was broad with only 14 members of the S&P 500 higher on the day. Major market indexes closed at their lows of the session.

China’s commerce ministry said Friday the country will impose a 34% levy on all U.S. products, disappointing investors who had hoped countries would negotiate with Trump before retaliating.

Technology stocks led the bleeding Friday. Shares of iPhone maker Apple slumped 7%, bringing its loss for the week to 13%. Artificial intelligence bellwether Nvidia pulled back 7% during the session, while Tesla

 fell 10%. All three companies have large exposure to China and are among the hardest hit from Beijing’s retaliatory duties.