US stocks continue to fall freely, with the sharpest decline in nearly 5 years

US stocks plunged sharply in the trading session on Thursday (April 3, local time) after President Donald Trump announced a series of new tariffs a day earlier. This raised concerns about a global trade war and the risk of economic recession.

According to CNBC , at the end of the trading session on April 3, the S&P 500 index plummeted 4.84% to 5,396.52 points, marking the worst trading session since June 2020. The stock decline was widespread with 400 stocks in the S&P 500 going down.

The negative developments in the trading session also brought the S&P 500 down about 12% from its record closing level set last February.

US stocks plunged sharply in the session on April 3 after Mr. Trump's tariff attack. (Photo: Getty Image)

The Dow Jones Industrial Average fell 1,679 points, or 3.98%, to close at 40,546. It was the Dow's biggest one-day drop since June 2020.

Nasdaq Composite fell 5.97%, closing at 16,550.61 points, marking the deepest decline since March 2020.

Under the impact of the reciprocal tax policy, the stocks of many multinational companies such as Nike and Apple have been struggling. Specifically, Nike and Apple stocks fell 14% and 9% respectively.

Major import companies were also hit hard, with Five Below down nearly 28%, Dollar Tree down 13% and Gap down 20%. Tech stocks were also hurt by the sentiment, with Nvidia down nearly 8% and Tesla down more than 5%.

A 10% reciprocal tariff on all imports into the US will take effect on April 5, followed by higher tariffs on about 60 economies in the coming days.

President Donald Trump has weighed in on the market sell-off, comparing tariffs to “surgery” and asserting that the US economy will soon be roaring back.

" This is the worst-case scenario for tax policy and it's not priced into the market yet, leading to a strong market reaction," said Mary Ann Bartels, chief strategist at Sanctuary Wealth. "The big question now is whether the S&P 500 can hold 5,500. If it doesn't, we could see another 5-10% drop to the 5,200-5,400 range ."

Investors have flocked to bonds as a safe haven amid growing concerns. The yield on the 10-year US Treasury note fell to 4% as bond prices rose.

Lagerstroemia (Source: CNBC)

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