Wall Street Crisis Deepens: S&P 500 Nears Bear Market Territory

US stock markets are crashing for the third day in a row after President Trump placed surprisingly high tariffs (import taxes) on goods from major trading partners. On Monday morning before markets opened, S&P 500 futures were down 2.8%, nearing bear market territory (a 20% drop from recent highs). Dow futures fell 1,000 points, and the Nasdaq continues dropping as investors sell off tech stocks.

The collapse started last week with the Dow suffering two consecutive days of 1,500+ point losses, including Friday’s massive 2,231-point drop. The S&P 500 had its worst day since the early pandemic in March 2020. Despite the market panic, Trump officials refuse to back down on the tariffs or delay the next round planned for April 9.

President Trump called the market decline “medicine” that’s necessary to fix trade imbalances. China immediately retaliated with a 34% tariff on all US imports instead of negotiating first, making the situation worse. Investors are particularly worried because the tariff rates seem arbitrary and the administration won’t delay them despite the market chaos.