The U.S stock market suffered another sharp decline on Friday after China retaliated against U.S. tariffs with new levies of its own, deepening fears that President Donald Trump’s aggressive trade policies are steering the global economy toward recession.
The Dow Jones Industrial Average fell more than 1,200 points, or 3%, following Thursday’s steep 1,679-point loss. The S&P 500 dropped 3.5% and is now down over 15% from its recent peak. The Nasdaq Composite, which is home to major tech firms reliant on Chinese supply chains, tumbled 3.8%, officially entering bear market territory with a 21% decline from its December high.
China’s Commerce Ministry announced on Friday a 34% tariff on all U.S. imports, mirroring the duties President Trump imposed on Chinese goods earlier this week. The move intensified market anxiety, with investors bracing for prolonged economic uncertainty.
Technology stocks took another hit, as Apple shares declined over 3%, adding to its 10% weekly loss. Semiconductor giant Nvidia slid 5%, while Tesla slumped 6%. Boeing and Caterpillar, both heavily exposed to China’s economy, led losses in the Dow. Meanwhile, China’s regulatory crackdown on foreign companies expanded, with Beijing launching an antitrust probe into DuPont, sending its stock plummeting 12%.
Investor sentiment remained highly fragile as the 10-year Treasury yield dropped below 4%, signaling a rush toward safe-haven assets. Analysts at JPMorgan raised their recession probability forecast to 60%, citing growing risks from escalating trade tensions.
Despite the financial turmoil, Trump stood firm on his tariff stance, declaring on Truth Social that his policies “will never change” and encouraging investors to focus on domestic opportunities. The Nasdaq has led the stock market’s decline this week, shedding 7.8%, while the S&P 500 and Dow Jones have fallen 6.4% and 5.3%, respectively. Both indexes are on track for their worst weekly performance since 2020.
Economic data provided a mixed picture, with March’s jobs report showing an increase of 228,000 nonfarm payrolls, exceeding economists’ expectations of 140,000. However, the unemployment rate ticked up to 4.2%. Trump hailed the employment data as evidence of his trade policies yielding results, but investors remain unconvinced as market volatility persists.