U.S. stocks faced significant losses as the impact of U.S. trade restrictions intensified, with the S&P 500 dropping by 2.2%, the Dow by 1.7%, and the Nasdaq composite by 3.1%. The Federal Reserve’s concerns over President Trump’s tariffs potentially dampening economic growth and raising inflation further fueled market declines. Nvidia’s shares plummeted following warnings that new export restrictions to China could significantly dent its financial results. Companies globally voiced uncertainties over Trump’s trade policies affecting their forecasts and economic outlooks.

Amidst the market turmoil, the Dow Jones Industrial Average fell by 2.1% and the Nasdaq composite by 4.1%. Federal Reserve Chair Jerome Powell’s remarks on the tariff impacts added to market jitters, although the Fed deferred decisions on interest rate adjustments pending further assessment. Companies like Nvidia, Advanced Micro Devices, and ASML faced stock declines due to export restrictions and heightened trade uncertainties.

The unpredictability of Trump’s trade war has disrupted companies’ plans, leading United Airlines to provide dual financial forecasts for the year due to the challenging forecasting environment. Concerns over a potential recession due to tariffs have influenced investor sentiment, with the World Trade Organization projecting a decline in global trade volume if tariff conditions worsen. The impact of tariffs on inflation and consumer sentiment has also been notable, with U.S. households expressing pessimism over economic conditions.

The bond market experienced fluctuations, reflecting investor concerns about economic uncertainties, while global stock markets witnessed declines, particularly in Asia. The overall market sentiment remains cautious as trade tensions continue to evolve, influencing corporate strategies and market dynamics.