Trump's Tariffs Cause $4 Trillion Market Loss, S&P 500 and Nasdaq Plummet Amid Tech Sector Decline

President Donald Trump's tariffs have triggered significant unrest among investors, leading to a stock market sell-off that has erased $4 trillion from the S&P 500's peak last month. The market downturn reflects growing concerns over an economic slowdown, exacerbated by a series of new Trump policies that have introduced uncertainty into the market. The sell-off intensified on Monday, with the S&P 500 dropping 2.7%, marking its largest daily decline of the year. The Nasdaq composite experienced a 4% fall, its biggest one-day drop since September 2022. The S&P 500 has now fallen 8.6% from its record high on February 19. The tech-heavy Nasdaq has declined over 10% from its December high. This market reaction comes amidst fears of a potential recession, fueled by Trump's trade policies and their impact on major trading partners like Canada, Mexico, and China. Investors are also grappling with broader economic uncertainties, including the possibility of a partial federal government shutdown and upcoming reports on inflation. The tech sector, in particular, has been hit hard, with companies like Tesla, Apple, and Nvidia seeing significant declines in their stock values. Tesla's shares dropped 14% after Delta Air Lines cut its first quarter profit estimates in half due to heightened economic uncertainty. Bitcoin also fell 5%, while the utilities sector saw a 1% gain. Safe-haven assets like 10-year Treasury yields, which dropped to about 4.22%, have seen increased demand. Hedge funds have reduced their exposure to stocks at the largest amount in over two years.