US Stock Market Live: US President Donald Trump’s reciprocal tariff announcements have triggered a massive sell-off across Wall Street, with the Dow Jones plunging over 2,000 points, the S&P 500 witnessing its worst two-day sell-off since March 2020 and the Nasdaq has entered bear market territory.
The two-day meltdown has resulted in the loss of over $5 trillion in market value, with the S&P 500 declining 10% in just two days. With Friday night’s sell-off, the Dow Jones is now just 700 points away from its 52-week low.
Treasury 10-year yields slid three basis points to 3.99%. The dollar rose 1%.
Megacaps plunged, with Nvidia Corp. and Tesla Inc. slumping over 7%. US-listed Chinese stocks like Alibaba Group Holding Ltd. and Baidu Inc. also tumbled. A gauge of big banks hit the lowest since Aug. 7. The Cboe Volatility Index jumped to the highest since April 2020.
Historically, the S&P 500’s trailing price-to-earnings ratio slides to an average of 15.6 during routs that precede economic downturns, according to data compiled by Sam Stovall at research firm CFRA. It’s currently around 22 despite the recent selloff.
