- China slapped a 34% tariff on U.S. goods, matching Trump’s move from earlier in the week.
- Tech and export-heavy stocks plunged, dragging markets to their worst week since 2020.
- Investors fled to bonds, and recession fears are rising fast—JPMorgan now sees a 60% chance.
The stock market took another beating Friday after China hit back with fresh tariffs on U.S. goods, sending a shockwave through investors who fear President Donald Trump may have sparked a full-blown global trade war. And yeah—it’s looking rough out there.
Markets Spiral as Trade Tensions Escalate
The Dow tanked more than 1,200 points (about 3%), deepening Thursday’s massive 1,679-point slide. The S&P 500 dropped another 3.5%, now down more than 15% from recent highs. The Nasdaq, full of China-tied tech giants, slipped nearly 4%, pushing it firmly into bear market territory—21% off its December peak. Not pretty.
Tech Stocks Can’t Catch a Break
Apple? Down over 3% Friday, capping a brutal 10% loss on the week. Nvidia dipped 5%. Tesla? Another 6% hit. These companies all do big biz with China, so they’re catching the worst of Beijing’s revenge tariffs. And it’s not just tech—Boeing and Caterpillar, both major exporters, led the Dow’s decline.
China Hits Back Hard
China’s Commerce Ministry matched Trump’s tariffs with a 34% hit on U.S. goods. But that wasn’t all. Beijing also added some American firms to its “unreliable entities list,” and launched an antitrust probe into DuPont—sending its stock plummeting 12%. Message received, loud and clear.
Investors Panic, Flee to Bonds
With volatility surging, traders rushed to safety. Treasury yields dropped under 4% again as bonds rallied. JPMorgan even bumped up its recession odds for 2025 to 60%. The vibes? Unsettled.
Trump Stays the Course
Despite the carnage, Trump isn’t backing down. “My policies will never change,” he declared on Truth Social, while telling folks it’s still a “great time to get rich.” Investors seem… not so sure.
Jobs Report Adds More Noise
Friday’s jobs data was a bit of a mixed bag. Payrolls rose by 228,000 (better than expected), but the unemployment rate ticked up to 4.2%. Trump spun it as proof his economic plan is working—but with markets tanking, few are cheering just yet.
