Global stock markets plunged on Apr. 4, after US President Donald Trump announced new tariffs.

The S&P 500 lost US$5 trillion in market value over two days, its biggest drop since March 2020. The Nasdaq entered bear market territory, while the Dow and S&P 500 confirmed corrections, marking their largest two-day loss since the March 2020 COVID-19 selloff.

China responded with 34% tariffs on US goods, escalating trade tensions.

Major indices plunged. The Dow fell 2,231 points (5.5%), the S&P 500 dropped 322 points (5.97%), and the Nasdaq lost 962 points (5.82%).

Sectors tied to China, like tech and energy, were hit hard. Apple fell 7.3%, and oil prices dropped sharply. Brent crude sank 6.5% to US$65.58.

Investors rushed to safe-haven assets. The US 10-year Treasury yield fell to 3.933%, while the German 10-year bond yield also declined.

Fed Chair Jerome Powell warned of slower growth and higher inflation.

JP Morgan raised the global recession risk to 60%. The dollar index rose 0.7% as uncertainty pushed investors to cash.