The Nasdaq plummeted 1,050.44 points(6%) to 16,550.61, the S&P 500 plunged 274.45 points(4.8%) to 5,396.52 and the Dow tumbled 1,696.39 points (4%) to 40,545.93.
Wall Street plunged after Trump unveiled a reciprocal tariff plan, proposing a 10% baseline tariff on all U.S. imports, excluding those under the USMCA. Countries like Cambodia, Laos, Madagascar, and Vietnam will face tariffs nearing 50% while China’s total rate will hit 54% with existing duties. Canada and the EU are preparing countermeasures. Fears of a global trade war are rising, with potential inflation and economic disruption.
Institute for Supply Management released a report showing U.S. service sector growth slowed by more than anticipated in the month of March. It said its services PMI fell to 50.8 in March after inching up to 53.5 in February. While a reading above 50 still indicates growth, economists had expected the index to show a more modest decrease to 53.
Computer hardware stocks turned in some of the market's worst performances, with the NYSE Arca Computer Hardware Index plummeting by 13.6% to its lowest closing level in over a year. Semiconductor stocks are substantially weak, as reflected by the 9.9% nosedive by the Philadelphia Semiconductor Index. Banking stocks substantially moved downwards, dragging the KBW Bank Index down by 9.9% to its lowest intraday level in almost seven months. Networking, oil producer and transportation stocks were considerably weak amid a broad based sell-off on Wall Street.
Asia-Pacific stocks moved mostly lower. Japan's Nikkei 225 Index plunged by 2.8% while Hong Kong's Hang Seng Index slumped by 1.5%. The major European markets also showed significant moves to the downside on the day. While the French CAC 40 Index plummeted by 3.3%, the German DAX Index dove by 3.0% and the U.K.'s FTSE 100 Index tumbled by 1.6%.
In the bond market, treasuries skyrocketed in reaction to Trump's tariff announcement. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, plunged 14.1 bps to a five-month closing low of 4.05%.