Markets in the United States closed out a brutal week with a deepening sell-off on Friday, triggered by growing fears that President Donald Trump’s new tariffs could ignite a global recession.
The Dow Jones Industrial Average fell 2,231 points, or 5.5%, to 38,315, marking its worst single-day decline since June 2020. Combined with Thursday’s losses, the Dow has dropped nearly 4,000 points in two days.
The broader S&P 500 lost nearly 6% on Friday, now down over 17% from its recent high, while the Nasdaq Composite slid 5.8%, officially entering bear market territory—down more than 22% from its December peak.
Technology stocks led the rout. Apple shares fell 7%, while Nvidia and Tesla lost 7% and 10% respectively, all hit hard by concerns over their China exposure. Boeing and Caterpillar, both major exporters, also suffered heavy losses.
Markets were spooked by China’s response to Trump’s sweeping 10% tariffs, with Beijing imposing a 34% tax on all US imports and targeting major American firms. China also launched an antitrust investigation into DuPont and added multiple US companies to its “unreliable entities list.”
Treasury yields tumbled as investors fled to safer assets, and the volatility index surged past 40—a level associated with extreme market stress.
ASX set for heavy losses
The fallout from Wall Street’s $9 trillion wipeout is expected to reverberate through local portfolios.
Australian markets are poised for steep declines when trading resumes on Monday, with futures pointing to a 331 point or 4.29% drop at the open—its biggest one-day fall since May 2020.
Fund managers are warning of systemic pressure as investors pull out of risky assets. Some Australian funds are already nursing heavy losses for the year, and margin calls are mounting globally. Hedge funds have been forced to liquidate positions, and retail investors who bought the dip last week were caught in a sharp reversal on Friday.
The three months to March marked the ASX’s worst quarter since the pandemic.
Commodities and the dollar
Brent crude is trading 6.5% lower at US$65.58 a barrel.
Spot gold is 2.47% lower at US$77.10 an ounce.
One Australian dollar is buying 59.99 US cents.
The week ahead
In the US, attention turns to CPI figures on Thursday and PPI data on Friday, which will shape expectations for interest rate policy. The minutes from the Fed’s March meeting are due Wednesday, offering further insight into how officials are weighing inflation risks.
In Australia, Westpac consumer confidence figures are due Tuesday, followed by NAB’s business conditions survey on Wednesday.
