Wall Street’s losing streak deepens as Trump’s tariffs kick in

Stocks plummet on Wall Street amid escalating trade war, wiping out gains since Election Day, impacting global markets.

Stocks tumbled on Wall Street Tuesday (March 4, 2025) as a trade war between the U.S. and its key trading partners escalated, wiping out all the gains for the S&P 500 since Election Day.

The tariffs between the U.S., China, Canada, and Mexico helped extend a recent slump for U.S. stocks that was prompted by signs of weakness in the economy.

The S&P 500 fell 1.7%, with every sector in the benchmark index losing ground. The Dow Jones Industrial Average shed 722 points, or 1.7%, as of 11:03 a.m. Eastern Time.

Also Read | World shares decline as Trump’s tariffs on Canada, Mexico and China take effect

The Nasdaq composite fell 1.5%. The tech-heavy index is on track to posting a 10% decline from its most recent closing high, which is what the market considers a correction. Technology stocks helped drive much of the market’s gains in 2024, but have been losing ground and acting as a heavy weight so far in 2025.

Markets in Europe fell sharply while stocks in Asia saw more modest declines.

The drops follow a steep sell-off Monday (March 3, 2025). Altogether, the decline has wiped out all of the markets’ gains since President Donald Trump’s election in November. That rally had been built largely on hopes for policies from Mr. Trump that would strengthen the U.S. economy and businesses. Worries about tariffs raising consumer prices and reigniting inflation have been weighing on both the economy and Wall Street.