US Markets Suffer Worst Plunge Since 2020, Oil Down 6% After Trump’s Tariff Bomb

The US stock market has suffered its worst plunge since 2020, while global oil prices are down 6 percent in the last 24 hours after President Donald Trump levied flat trade tariffs on over 180 countries. Crude oil prices extended losses, with WTI futures slipping toward $66 per barrel on Friday. The Dow Jones Industrial Average plunged nearly 1,700 points, or by 4 percent, marking the fifth-largest point drop in its history. The tech-heavy Nasdaq Composite fell 6 percent, and the S&P 500 shed almost 5 percent. Mega-cap technology stocks led the rout. Apple dropped over 9 percent following concerns that its supply chain, heavily reliant on China, would be severely disrupted. China was among the hardest hit by Trump’s new tariffs, with its effective rate rising to 54%. Nvidia alone lost more than 7 percent. During the session, the “Magnificent Seven” tech giants lost over $900 billion in market capitalization. Smaller companies were not spared. The Russell 2000 index fell more than 6.4 percent. The selloff extended beyond equities. The yield on the 10-year US Treasury fell 14 basis points to 4.05 percent, its lowest since October 2024, signaling a flight to safety. The US dollar index dropped 1.5 percent to 101.92, also a five-month low. The market turmoil was triggered by Trump’s abrupt unveiling of a two-phase tariff plan late Wednesday. The policy includes a blanket 10 percent tariff on all US trade partners and significantly steeper duties for nations labeled “bad actors.” In total, tariffs now apply to 185 countries, lifting the US average tariff rate to its highest level in over 100 years. Donald Trump has so far dismissed investor concerns and bet big that the markets would eventually boom. International markets didn’t take it too well. Europe’s Stoxx 600 index dropped over 2.5 percent, and Japan’s Nikkei 225 fell 2.7 percent, touching its lowest level since August 2024. Meanwhile, the drop in oil prices followed a more than 6% decline in the previous session, driven by global economic uncertainty and a surprise production hike by OPEC+. Eight key OPEC+ members agreed to increase output by 411,000 barrels per day next month—well above the expected 140,000-barrel increment. Although US energy imports remain exempt from the new tariffs, WTI is now on track for a weekly decline of nearly 4 percent.