In a dramatic turn of events, U.S. stock markets plunged on March 3, 2025, as new tariffs imposed by former President Donald Trump’s administration sent shockwaves through the financial sector. Investors reacted swiftly, pulling back from riskier assets amid heightened concerns over the global economy.
Biggest Single-Day Drop of the Year
The Dow Jones Industrial Average suffered a staggering 650-point loss, making it the worst single-day drop of the year. Meanwhile, the S&P 500 slipped 1.8%, wiping out its gains for 2025, and the Nasdaq Composite fell 2.6%, weighed down by a sharp 8.8% plunge in Nvidia’s stock.
The Tariff Fallout: Trade Wars Reignite
The market turmoil follows the official implementation of a 25% tariff on imports from Canada and Mexico and a 10% tariff on Chinese goods, sparking immediate retaliation from trading partners. China and Canada both announced countermeasures, further escalating global trade tensions.
Economic Jitters: Weak Manufacturing Data Adds to Fears
As if the tariffs weren’t enough, new manufacturing data delivered another blow, revealing weaker-than-expected economic performance. The impact rippled across markets, pushing the 10-year Treasury yield down to 4.16%, its lowest level since December 2024.
Global Markets React: A Domino Effect
The ripple effects of the U.S. downturn have already been felt worldwide. Asian markets nosedived, with Japan’s Nikkei, Taiwan’s benchmark index, and Hong Kong’s Hang Seng all posting losses. The Australian dollar fell, and crude oil prices hit new lows, as global investors adopted a more cautious stance.
What’s Next?
With markets on edge, all eyes are now on upcoming economic reports and corporate earnings to gauge the long-term impact of the tariffs. Will the U.S. economy withstand another trade war, or is this the beginning of a more significant downturn?
For ongoing updates, check out the latest coverage from:
📉 Reuters – Stocks slide with bond yields as new Trump tariffs take effect
📉 AP News – Asian shares fall after Wall St retreats on fears over Trump’s tariffs
📉 Investopedia – Markets News, March 3, 2025: Stocks tumble, Nvidia plunges
📉 MarketWatch – Dow ends down 650 points after new tariffs take effect
📉 PBS NewsHour – Dow drops nearly 650 points on worries over Trump’s latest tariffs
📢 Stay tuned for more updates on WorldRadar.io.
