Dow Plunges Over 1,200 Points, S&P 500 Enters Bear Market As Trump Tariffs Jolt Global Economy

Last Updated:April 07, 2025, 19:39 IST

The Dow Jones fell 1,343 points (3.5%), and the Nasdaq dropped 4.2% amid trade war fears. The S&P 500 was down 3.8%, nearing a "bear market" after losing over 20%.

A screen displays the Dow Jones Industrial Average after the closing bell on the floor at the New York Stock Exchange (NYSE) in New York City, US. (IMAGE: REUTERS)

The Dow Jones Industrial Average was down 1,343 points, or 3.5, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 4.2% lower as losses were only worsening for financial markets worldwide as worries rose Monday about whether US President Donald Trump’s array of tariffs will trigger a trade war that will torpedo the global economy.

The S&P 500 was down 3.8% in early trading, coming off its worst week since COVID began crashing the global economy in March 2020. The index, which sits at the heart of many investors’ 401(k) accounts, has lost more than 20% since setting a record less than two months ago.

If the S&P 500 finishes the day below that mark, it’s a big enough drop that Wall Street has a name for it. A “bear market" signifies a downturn that’s moved beyond a run-of-the-mill 10% drop, which happens every year or so, and has graduated into something much more vicious.

Washington D.C., United States of America (USA)

News business Dow Plunges Over 1,200 Points, S&P 500 Enters Bear Market As Trump Tariffs Jolt Global Economy