US markets crash on Trump tariff: Nasdaq, S&P down more than 5 percent

European markets also closed lower with the the UK’s FTSE 100 trading 1.7 percent lower at 8,474, its biggest one-day fall in eight months.

US markets continued to face selling pressure by mid session on March 3. After an expected lower opening, US indices continued to trade in the red. As of 12:30 pm EST ( 10 pm IST), the Dow Jones Industrial Average was trading at 41,074.58, down by 2.72 percent,  while the S&P 500 was trading at 5,461.65, a nearly 4 percent decrease.  The Nasdaq was trading at 16,778.43, a decrease of 4.67 percent. The US dollar Index was down nearly 1.2 percent at 102.2.

Bloomberg reported that nearly $2 trillion had been erased from the S&P Index on Thursday during early trades amid worries that the tariffs could push the US economy into recession. They added that the tariff plan is equivalent to the largest tax increase since 1968 and could end up adding nearly 1.5 percent to prices this year. The stocks which have been facing the maximum brunt have been those with dependency on global manufacturing such as Apple and Nike. Auto stocks also fell as the Auto tariffs announced by the US also came into effect.

CNBC reported that small-cap stocks index heads for worst day in nearly 5 years with the Russell 2000 falling nearly 6.5 percent during the session, close to its worst day since June 11, 2020, when it fell 7.58 percent.

European markets also closed lower with the the UK’s FTSE 100 trading 1.7 percent lower at 8,474, its biggest one-day fall in eight months. Similarly, France’s CAC 40 trading 3.4 percent lower at 7,598 and Germany’s DAX trading 3% lower at 21,700. The Stoxx 600 also closed around 3.9 percent lower.

Agency reports added that in a presser Canadian PM Mark Carney has announced that it would levy 25 percent tariffs on all vehicles imported from the United States that are not compliant with CUSMA (the North American Free Trade Agreement).