NEW YORK, New York - U.S. stock markets plunged on Thursday in reaction to major trade tariffs announced by U.S. President Donald Trump.

"This was the worst case scenario for tariffs and they were not priced-into the markets, which is why we are seeing such a risk-off reaction," Mary Ann Bartels, chief investment strategist, Sanctuary Wealth told CNBC Thursday. "The big question is if 5,500 can hold on the S&P 500. If it cannot hold, we may see another 5-10% downside, which could likely point to a bottom of 5,200-5,400."

The Magnificent Seven tumbled $800 billion in value.

Following are Thursday's closing quotes for key U.S. markets:

• S&P 500: The broad market index fell by 274.45 points to close at 5,396.52, a decrease of 4.84 percent. This marks the index's worst single-day performance since June 2020. ​

• Dow Jones Industrial Average: The blue-chip index dropped 1,679.39 points, ending the session at 40,545.93, down 3.98 percent.

• NASDAQ Composite: The tech-heavy index declined by 1,050.44 points to 16,550.61, a loss of 5.97 percent. ​

Market Impact

The newly announced tariffs include a baseline 10 percent levy on all imported goods, with higher rates targeting specific countries—such as a 34 percent tariff on Chinese imports. Major corporations reliant on international supply chains, including Apple, Nike, and several tech firms like Nvidia and Amazon, experienced steep stock price declines. ​

The announcement spurred a 2.1 percent drop in the U.S. Dollar Index and a 2.4 percent surge in the euro, reviving fears of financial market instability.

Analysts warn that the lack of clarity about tariff implementation and exemptions could prolong market volatility in the coming months. ​

Investors are advised to brace for continued turbulence as the situation develops.​

Global Foreign Exchange Markets React Tariffs Sending U.S. Dollar Sharply Weaker on Thursday

The global foreign exchange market saw significant movements on Thursday, with the U.S. dollar weakening sharply against major currencies as investors reacted to shifting monetary policy expectations and renewed geopolitical uncertainties.

The euro surged against the dollar, with the EUR/USD pair rising 1.61 percent to 1.1023, marking its strongest level in weeks. 

The Japanese yen also saw a sharp appreciation, with the USD/JPY pair dropping 2.01 percent to 146.20. 

The British pound gained ground against the dollar, with GBP/USD climbing 0.64 percent to 1.3080. 

In North America, the Canadian dollar strengthened as the USD/CAD pair fell 1.03 percent to 1.4085, helped by rising oil prices and a more hawkish tone from the Bank of Canada. Meanwhile, the Swiss franc rallied, with USD/CHF plunging 2.46 percent to 0.8594, as investors sought safe-haven assets amid renewed market volatility.

Among commodity-linked currencies, the Australian dollar edged higher, with AUD/USD rising 0.32 percent to 0.6316, while the New Zealand dollar gained 0.69 percent, pushing NZD/USD to 0.5782. 

World stock markets plunge amid shoch over Trump tariffs

​Global financial markets experienced significant declines on Thursdayfollowing the announcement of extensive new tariffs by U.S. President Donald Trump. The tariffs, which impose a baseline 10 percent levy on all U.S. imports—with higher rates for specific countries—have intensified fears of a global trade war and potential recession. 

Here are the closing quotes for Thursday for key equity markets around the world:

Canadian Markets

• S&P/TSX Composite Index: Canada's main stock index fell 971.41 points to close at 24,335.77, down 3.84 percent. ​

UK and European Markets

In the UK and Europe, major indices closed sharply lower:​

• FTSE 100 (UK): The main London exchange fell by 133.74 points to 8,474.74, a decrease of 1.55 percent.​

• DAX (Germany): dropped 673.45 points to 21,717.39, down 3.01 percent.​

• CAC 40 (France): declined 259.85 points to 7,598.98, a loss of 3.31 percent.​

• EURO STOXX 50: decreased by 190.67 points to 5,113.28, down 3.59 percent.​

• Euronext 100: fell 49.85 points to 1,513.04, a drop of 3.19 percent.​

• BEL 20 (Belgium): declined 49.44 points to 4,294.73, down 1.14 percent.​

Asian Markets

Asian markets also reacted negatively:​​

• Nikkei 225 (Japan): dropped 989.94 points to 34,735.93, down 2.77 percent.​

• KOSPI Composite Index (South Korea): declined 19.16 points to 2,486.70, a loss of 0.76 percent.​

• SSE Composite Index (China): fell 8.12 points to 3,342.01, down 0.24 percent.

• Hang Seng Index (Hong Kong): fell 352.72 points to 22,849.81, a decrease of 1.52 percent.​

• S&P BSE SENSEX (India): decreased by 322.08 points to 76,295.36, a drop of 0.42 percent.​

• STI Index (Singapore): declined 11.98 points to 3,942.23, down 0.30 percent.​

• S&P/ASX 200 (Australia): fell 74.80 points to 7,859.70, a decrease of 0.94 percent.​

• ALL ORDINARIES (Australia): dropped 80.40 points to 8,052.70, down 0.99 percent.​

• IDX Composite (Indonesia): contrasted the trend by rising 38.26 points to 6,510.62, an increase of 0.59 percent.​

• FTSE Bursa Malaysia KLCI (Malaysia): fell 7.61 points to 1,518.91, down 0.50 percent.​

• S&P/NZX 50 Index Gross (New Zealand): increased by 18.37 points to 12,338.57, a gain of 0.15 percent.​

• TWSE Capitalization Weighted Stock Index (Taiwan): rose 18.02 points to 21,298.22, up 0.08 percent.​

Middle East and Africa

Markets in the Middle East and Africa joined the rout:​

• TA-125 (Israel): fell 21.35 points to 2,481.33, down 0.85 percent.​

• EGX 30 Price Return Index (Egypt): decreased by 326.50 points to 31,699.60, a drop of 1.02 percent.​

• Top 40 USD Net TRI Index (South Africa): declined 146.32 points to 4,546.32, down 3.12 percent.​

The U.S. Dollar Index fell 1.62 points to 102.19, a decrease of 1.56 percent. ​The market downturn is attributed to President Trump's announcement of new tariffs, including a 10 percent charge on UK goods, 34 percent on Chinese imports, 20 percent on EU goods, 24 percent on Japanese items, and 26 percent on Indian products. These measures have escalated fears of a global recession and prompted investors to seek safe-haven assets. ​Analysts warn that the tariffs could produce recessionary conditions unless reversed, with potential retaliatory measures from affected countries further exacerbating economic concerns.

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