Wall Street Shaken Again as Tariff Fears Spark 300-Point Dow Drop

Markets tumbled Tuesday as investor optimism quickly faded ahead of the looming implementation of new U.S. tariffs on China. The Dow Jones Industrial Average fell 320 points, or 0.84%, closing at 37,645.59 — capping a four-day loss of over 4,500 points fueled by trade tensions.

Apple led the sell-off, with shares falling nearly 5% as the tech giant braces for increased costs under the 104% cumulative tariffs taking effect just after midnight. Despite a brief rally earlier in the day, the S&P 500 dropped 1.57% to close at 4,982.77, slipping below the 5,000 mark for the first time since April 2024 and nearing bear market territory with a 19% decline from its February high.

The Nasdaq Composite shed 2.15%, ending at 15,267.91, with a four-day loss exceeding 13%. Markets initially opened strong on hopes of potential trade negotiations, buoyed by optimistic remarks from President Trump and Treasury officials. However, gains evaporated as tariff deadlines approached.

Traders warn that continued volatility is likely unless clear, stable trade policies are established. As new tariffs stack on top of existing duties, corporations are left in limbo, uncertain how to plan amid policy unpredictability.