Benzinga and Yahoo Finance LLC may receive commissions or revenue on select items via the links below.
In response to the recent tariff announcements affecting various U.S. trade partners, President Donald Trump downplayed the market’s turmoil while addressing reporters prior to boarding Air Force One for his trip to Miami.
What Happened: President Trump likened the stock market’s drop to a surgical procedure, stating, “I believe it’s progressing well, it was an operation… It’s a significant development. I predicted this would unfold exactly as it has. We anticipate $6-$7 trillion flowing into our nation, unlike anything we’ve ever experienced.”
“The market is set to thrive, the stocks are destined to soar, the country will prosper, and the rest of the globe is eager to explore potential deals,” he further remarked.
Don’t Miss: Deloitte’s rapidly growing software company collaborates with Amazon, Walmart & Target – Final Opportunity to purchase 4,000 of its pre-IPO shares at just $0.26 each!
These assertions came after U.S. stocks experienced their largest one-day drop since 2020. The Dow Jones and S&P 500 recorded their worst trading day since June 2020, while the Nasdaq suffered its most dramatic single-day loss since March 2020. The Dow’s decline of 1,679 points marked its fifth-most significant drop in history.
Why It Matters: In an effort to address the U.S. trade deficit, Trump invoked a 1977 statute to officially announce a trade emergency, subsequently unveiling new tariffs on Wednesday.
He enacted a blanket 10% tariff on all trading partners and imposed additional duties on nations he labeled as “adversaries.”
See Also: The $1.3 billion startup investment surge: How this company’s remarkable growth is creating opportunities for everyday investors with a new $500 minimum
It’s important to mention that China, Vietnam, Cambodia, and Sri Lanka are facing the highest tariffs, while Canada and Mexico have been exempted.
The major indices have entered correction territory, characterized by a fall exceeding 10% from their latest peaks.
The S&P 500, which reached 6,147.43 points on February 19th, has since decreased by 12.22%. Concurrently, the Nasdaq 100 has experienced a more pronounced decline of 16.65% from its 52-week high of 22,222.61 points, approaching the -20% threshold that indicates a bear market.
