All three major US index funds closed as Apple and Nvidia, two of the largest US companies, lost a combined $470 billion.

In a dramatic turn of events, the US stock markets suffered their worst single-day decline since the height of the COVID-19 pandemic, as investors reacted nervously to renewed concerns over tariffs introduced during the Trump administration.

On Wall Street, the Dow Jones Industrial Average plummeted by over 1,000 points, marking its steepest decline in months and the worst performance since early 2020. The S&P 500 and Nasdaq Composite also saw significant drops, reflecting widespread investor anxiety across sectors.

Analysts attribute the sudden downturn to fears that the ongoing trade tensions and tariffs could hamper global economic growth. Investors are concerned that the unpredictable nature of trade policies may introduce volatility, disrupt supply chains, and increase costs for American businesses.

The tariffs, which targeted goods imported from China and other trading partners, were initially implemented to protect US industries. However, many businesses and market watchers warn that these measures have backfired, leading to higher prices for consumers and increased costs for companies reliant on international supply chains.

The sharp decline reflects a broader shift in investor sentiment—moving from optimism about economic recovery post-pandemic to caution and concern over trade policies. Many fear that escalating tariffs could slow down economic momentum, potentially triggering a recession.

“Markets are reacting to the uncertainty around tariffs and trade negotiations,” said a market analyst. “Investors are seeking safety, leading to a sell-off across equities.”