The Dow dropped nearly 1700 points, and US stocks recorded the largest single-day drop in 5 years.

[Source/Observer Network, Yao Yunqi] According to reports from The Wall Street Journal and CNBC, due to market concerns that U.S. President Trump's comprehensive tariff plan will trigger a global trade war and drag the U.S. economy into recession, U.S. stocks suffered their largest single-day drop since March 2020. On April 3 local time, the main U.S. stock indexes fell by 6%, wiping out approximately $3.1 trillion in market value.

By the close on April 3 local time, the Dow Jones Industrial Average (DJIA) fell 1,679.39 points, a decline of 3.98%, closing at 40,545.93; the S&P 500 index dropped 4.84%, closing at 5,396.52; the Nasdaq Composite Index fell 5.97%, closing at 16,550.61.

The seven major U.S. tech giants (Magnificent 7) lost more than $1 trillion collectively on April 3 local time. CNBC said this was a shocking moment that highlighted how Trump's tariff measures have severely impacted financial markets.

In addition, the U.S. dollar index experienced its largest decline of 2023 on April 3. The 1.3% drop pushed the dollar to its lowest level since October last year, indicating unease about economic growth prospects and concerns about a significant reduction in funds flowing into the United States.

According to the South China Morning Post, the sharp fall in the dollar has driven most major currencies to rise. The pound rose 0.8% to $1.3115 per pound, the highest level since October last year. The yen and Swiss franc both rose by over 1%.

Reports also indicate that risks facing the U.S. economy are reflected in rising expectations for Federal Reserve interest rate cuts. Overnight indexed swaps show that the probability of the Fed cutting rates before June is 84%, up from 76% on April 2. U.S. Treasury yields are near 4%.

However, CNBC noted that White House officials largely downplayed concerns about Trump's economic policies disrupting the stock market.

On April 2 local time, U.S. Treasury Secretary Scott Bessent attributed the recent sharp market declines to poor performance by U.S. technology companies.

"I am trying to be the treasury secretary, not a market commentator," Bessent said. "I want to point out that the Nasdaq peaked when DeepSeek launched, so this is a problem with the U.S. tech giants, not MAGA."

On the afternoon of April 3, Trump responded to questions about tariffs by saying, "I think it's going very well." "The market will thrive."

This article is an exclusive contribution from Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7489330025037103670/

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