Dow drops 1,100 points as global markets crater after Trump’s ‘Liberation Day’ tariffs

President Donald Trump’s “Liberation Day” tariffs rocked markets on Thursday. 

Global markets tumbled after President Donald Trump unveiled his “Liberation Day” tariffs, sending shock waves through stock indexes and slamming shares of companies reliant on global supply chains.

US stocks opened sharply lower on Thursday. At the 9:30 a.m. ET opening bell, the S&P 500 was down 3.7%, while the Nasdaq 100 was down 4.4%. The Dow Jones Industrial Average dropped as much as 1,300 points in the early morning, opening 2.9% lower. The 10-year US Treasury yield also declined 15 basis-points, falling to its lowest level since October.

Here’s where major US indexes stood shortly after the 9:30 a.m. ET opening bell:

S&P 500: 5,494.04, down 3.23%

Dow Jones Industrial Average: 41,118.98, down 2.70% (1,139.55 points)

Nasdaq Composite: 16,831.68, down 4.37%

Yeap Jun Rong, an IG market strategist, described the tariffs as a “major shock,” adding that Trump’s announcement was “far more hawkish” than expected. The Wedbush analyst Dan Ives called them “worse than the worst-case scenario.”

Trump’s tariffs are also rattling seasoned forecasters.

“This is a game changer, not only for the US economy but for the global economy. Many countries will likely end up in a recession,” wrote Olu Sonola, the head of US economic research at Fitch Ratings, in a note on Wednesday.

Retailers and other consumer goods companies are getting crushed

Investor anxiety over Trump’s tariff policy has weighed on stocks already this year. The S&P fell nearly 5% in the first quarter, marking its worst quarterly showing since 2022.

Shares of companies reliant on global supply chains — such as apparel retailers that source most of their goods from overseas — were hammered in premarket trading.

• RH: – 28.5%
• Wayfair: -15.8%
• Five Below: -15.5%
• Crocs: -12.1%
• Lululemon Athletica: -12.6%
• Deckers Outdoor: -12.2%
• Skechers USA: -11.6%
• Dollar Tree: -10.5%
• Apple: -7.8%
• Nike: -9.9%
• Amazon: -6.4%
• Walmart: -4.1%
• Nvidia: -5.5%
• Tesla: -6%

European stocks slump

European stock indexes fell in Thursday morning trading as investors punished companies they expected to be squeezed by Trump’s tariffs. Goods from the European Union will be subject to a 20% tariff and goods from the UK will be subject to a 10% levy.

The European Commission’s president, Ursula von der Leyen, said in a televised statement that the European Union was finalizing its response to Trump’s previous tariffs on steel and that it was “now preparing for further countermeasures to protect our interests and our businesses if negotiations fail.”

Germany’s DAX fell 2.3%, Britain’s FTSE 100 slid 1.6%, France’s CAC 40 lost 2.9%, and the Euro Stoxx 50 dropped 2.9%.

London-listed shares of Standard Chartered fell by 9.3%, Barclays retreated 7%, HSBC slid 6.4%, and InterContinental Hotels Group dropped 5.7%.

In Frankfurt, Adidas tanked 9.6%, Siemens fell 6.2%, and Deutsche Bank dropped 5.9%.

EssilorLuxottica shares fell 8.3% in Paris, Nokia shares dropped 6.3% in Helsinki, and Unicredit shares fell 5.5% in Milan.

Gold climbs while bitcoin, oil, and the dollar fall

Gold hit a fresh record of nearly $3,160 an ounce before reversing course. Gold bullion — one of the few commodities exempted from the tariffs per a White House fact sheet — rose as much as 0.8% at Thursday’s open in Asia before falling slightly during the day.

Investors have flocked to the precious metal this year in a flight to safety amid rising macroeconomic uncertainty.

In contrast, bitcoin fell as traders sold off risky assets. Oil futures declined on mounting fears of an economic slowdown.

The benchmark 10-year Treasury yield dipped below 4.08% for the first time since October as investors sought shelter in bonds.

The US dollar also fell against other major currencies.

• Spot gold: $3,149 per ounce
• Bitcoin: -3.28% at $81,887
• WTI oil: -7.11% at $66.61 a barrel
• US Dollar Index: -2.16% at 101.56, a six-month low

Asia stocks tumble

Asian markets sold off following the tariff declaration, reflecting the region’s exposure to the new levies.

Trump announced a 34% tax on imports from China, on top of an existing duty of 20%, bringing the total tariff to 54%.

“China firmly opposes this and will take countermeasures to safeguard its own rights and interests,” China’s Commerce Ministry said in a statement.

US allies Japan and South Korea face 24% and 25% tariffs, respectively, unless the countries’ leaders can strike a deal to avoid them.

Southeast Asian countries — many of which have become supply chain hubs for companies diversifying manufacturing activities from China — are some of the most affected by the new US tariffs.

Vietnam, Thailand, Indonesia, and Malaysia face tariffs of 46%, 36%, 32%, and 24%, respectively. Indexes around the region showed investors’ worry on Thursday:

• Japan’s Nikkei 225: -2.7%
• South Korea’s Kospi: -0.8%
• Hong Kong’s Hang Seng Index: -1.5%
• Vietnam’s Ho Chi Minh Stock Index: -6.7%
• Thailand’s SET Index: -0.9%
• Malaysia’s KLCI: -0.5%
• Australia’s ASX200: -0.9%