Stock Market Tanks as Trump Tariffs Go Full Blast

Wall Street started the week with hope. That hope vanished fast. President Trump confirmed that the U.S. will hit China with a brutal 104% tariff on imported goods. The stock market reacted violently. After a brief morning rally, major indexes plunged.

The S&P 500 fell to its lowest level in a year. The Nasdaq dropped over 2%. Even the Dow, which had been up 1,300 points earlier in the day, ended deep in the red. Investors were whipsawed by mixed signals—first a rumor of negotiation, then a firm statement from the White House. Now, markets are bracing for more chaos.

Stock Market Chaos Spurs Wall Street to Freeze

It’s not just stocks—Wall Street as a whole is stalling. IPOs have been shelved. Bond markets are quiet. Big companies like StubHub and Klarna postponed going public. Banks are also putting buyouts and loans on hold. The fear? That borrowing costs are about to spike and defaults could rise if the economy sours.

Behind the scenes, major CEOs are worried. Bank of America, Citigroup, and Goldman Sachs bosses even held emergency calls. With earnings season ahead, they’re nervous. Profit forecasts for big banks are down, and instability is the new normal. As one analyst put it: this is no longer an earnings-driven market. Tariffs are in control now.

Bitcoin Slides as Trade War Hits Risk Assets

Bitcoin tried to rally—but the bounce didn’t last. After spiking on false reports of a tariff pause, BTC dropped fast once the White House confirmed the 104% China tariffs. The crypto fell below $75,000 for the first time in months.

Analysts pointed to a “fair value gap” between $77,000 and $73,400, a zone created during the last Trump-driven surge. Now, that zone is being tested again. Some traders remain hopeful, but on-chain data is flashing red. Long-term holders are moving old coins onto exchanges—a possible sign of selling pressure. If history repeats, Bitcoin could fall further.

Trade War Fears Shake Investor Confidence

The trade war is no longer a threat—it’s here. Trump’s aggressive move sent a clear message: the U.S. won’t back down. China vowed to “fight to the end.” That means more retaliation, more uncertainty, and more pain for the stock market.

Already, China has slapped its own 34% tariff on U.S. goods. The Trump administration answered with an even bigger 50% hike, pushing the total tariff rate to 104%. This tit-for-tat escalates the risk of a global slowdown. Companies are raising prices. Global trade is slowing. And investors are scrambling to figure out what comes next.

Stock Market Outlook Hinges on Trump’s Next Move

For now, the stock market is stuck in limbo. Traders are watching Trump’s every post. Any hint of negotiation moves prices up. Any sign of escalation sends them crashing back down. The extreme volatility is breaking usual patterns.

Bond markets are also flashing warning signs. Yields are swinging hard. Risk is being repriced. Even crypto is feeling the heat. If no resolution comes soon, the damage could deepen. As Trump courts Japan and South Korea for new deals, the world waits to see if talks with China will ever begin.

Until then, the stock market remains trapped in Trump’s trade war crossfire.