Around $2.5 trillion was wiped off from the S&P 500 Index on Thursday and the US stock market closed on the worst day of trading since 2020, with all three major index funds down in response to President Donald Trump's latest worldwide tariff salvo. The tariff announcement has also deepened a trade war that many fear will invite global recession. 

Advertisment

The New York Stock Exchange closed on its worst day of trading since June 2020 – during the early months of the Covid-19 pandemic. On the other hand, the main indices saw their worst one-day falls in five years. Apple and Nvidia lost a combined $470bn. 

Also read: 'You're fired!' Trump fires ‘disloyal’ national security staffers after meeting with conspiracy theorist Laura Loomer: Who is she?

The Dow has posted its biggest one-day drop since June 2020, down 4%, on the other hand, the S&P 500 index is down 4.9% at the close, and as per news agency Reuters, this is also the biggest one-day drop since June 2020. Meanwhile, the Nasdaq tumbled 5.9%. 

Advertisment

Also read: 'Tariff this, tariff that': Where does Trump's 'favourite' word comes from? SPOILER! It's not US 

Trump initially claimed that "the markets are going to boom" in response to his sweeping tariffs, however, he admitted the shock brought by his tariffs onslaught Thursday. He also said that the US economy would emerge "far stronger" despite tumbling world markets. 

"THE OPERATION IS OVER! THE PATIENT LIVED, AND IS HEALING. THE PROGNOSIS IS THAT THE PATIENT WILL BE FAR STRONGER, BIGGER, BETTER, AND MORE RESILIENT THAN EVER BEFORE," Trump posted on his Truth Social platform less than an hour before Wall Street opened for trading.

Advertisment

Also read: 'F***ing crazy to deport gay hairdressers': Trump's fan Joe Rogan slams US president for 'horrific' deportations 

IMF chief warns of 'significant risk' to global economy

On Thursday, IMF chief Kristalina Georgieva said new US tariffs "clearly represent a significant risk to the global outlook" and urged Washington to work with its trade partners. 

The tariffs "clearly represent a significant risk to the global outlook at a time of sluggish growth," the head of the International Monetary Fund said in a statement. 

Also read: 'Old relationship is over': Canada hits US with 25% tariffs on American-made cars; over 3000 autoworkers laid off

"It is important to avoid steps that could further harm the world economy," Georgieva added. 

"We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty." 

(With inputs from agencies)