Summary
U.S. stocks suffered a historic collapse as Trump’s sweeping tariffs triggered panic over inflation and recession. The Dow fell 2,231 points, the S&P 500 dropped 6%, and the Nasdaq entered a bear market.
Fed Chair Jerome Powell warned the 10% import tariffs and retaliatory moves from China, including a 34% tariff on U.S. goods, will hurt growth and raise prices.
Economists cut U.S. growth forecasts below 1%, projecting households could face $1,900 in added costs.
The sell-off erased $2.7 trillion in value and marked the worst two-day market drop since March 2020.
For reference, because I had to check, the drop that lead to the great depression was a 13% loss on Black Monday. Black Tuesday saw a 12% loss. This continued until it lost 89% of it’s total value. Today’s loss was 5.5%. Certainly a warning sign when you consider that the loss trend lasted from October 28th 1929 to the summer of 1932…
That is until you consider the total lost since inauguration day, which is one third to half the US GDP…
The way I had my investments structured, I was still getting gains until last week. Think I’m gonna liquidate now and ride out the plunge.