U.S. equity markets have suffered one of the most severe sell-offs in modern history following President Donald Trump’s sweeping tariff announcement, with more than $6.6 trillion in market value erased in just three days — the largest such loss on record.
What Happened
On April 5, 2026, Trump’s 10% minimum tariff on nearly all goods imported into the United States officially took effect. The policy, which also includes higher country-specific rates, sent global markets into immediate freefall.
By the end of trading on April 4–5, the Dow Jones Industrial Average had shed more than 4,000 points (9.48%), the S&P 500 dropped 10%, and the Nasdaq Composite fell 11% — marking the worst two-day loss in the history of U.S. financial markets.
April 7: Nasdaq Stages Historic Intraday Recovery
On Monday, April 7, markets opened deep in the red as panic selling continued. However, the session took a dramatic turn midday when unverified reports spread online suggesting the Trump administration was considering a 90-day pause on all tariffs except those targeting China.
White House Press Secretary Karoline Leavitt quickly labeled the reports as “fake news,” denying any pause was under consideration. Despite the denial, the Nasdaq staged what analysts called the largest intraday comeback since 2008, recovering most of its losses before the close.
The Dow ended April 7 down 300+ points, while the Nasdaq closed slightly positive on the day. The three-day cumulative loss remained the worst since Black Monday in 1987.
Pharmaceutical Sector Hit Hard
Compounding investor anxiety, reports emerged that the Trump administration is preparing tariffs of up to 100% on imported pharmaceuticals. Healthcare giants Eli Lilly and Amgen each fell approximately 2% on the news, adding pressure to an already battered market.
Global Ripple Effects
The tariff shock has reverberated worldwide. Asian and European markets posted sharp declines in sympathy. Economists warn that if the tariffs remain in place, they could push the U.S. — and potentially the global economy — into recession territory by the third quarter of 2026.
Goldman Sachs raised its U.S. recession probability estimate to 45%, while JPMorgan put the odds at over 60%, citing disruptions to global supply chains and declining consumer confidence.
What Investors Are Watching
Market participants are closely monitoring any official statements from the White House regarding potential tariff negotiations or modifications. Any confirmed pivot toward negotiations — particularly with major trading partners such as the EU, Japan, and South Korea — could trigger a significant relief rally.
For now, analysts advise extreme caution, noting that uncertainty itself is a major headwind to equity valuations.
Frequently Asked Questions
Q: How much did the stock market fall due to Trump tariffs?
A: The Dow Jones fell over 4,000 points (9.48%), the S&P 500 dropped 10%, and the Nasdaq declined 11% in just two days following the implementation of Trump’s 10% minimum tariff on April 5, 2026. Total market losses exceeded $6.6 trillion.
Q: Is a 90-day tariff pause actually being considered?
A: As of April 7, 2026, the White House denied reports of a 90-day tariff pause. Press Secretary Karoline Leavitt called the reports “fake news.” No official pause has been announced.
This article was written by AI based on publicly available information. 이 기사는 공개된 정보를 바탕으로 AI가 작성했습니다.

