Worst U.S. Market Performance in 100 Days in Half a Century
The U.S. financial markets recorded their worst performance during the first 100 days of President Donald Trump’s second term—marking the sharpest downturn since the presidency of Gerald Ford in 1974.
The S&P 500 index dropped by 7.2%, wiping out nearly $3.7 trillion in market value, weighed down by the Trump administration’s aggressive trade policies, most notably the sweeping import tariffs
"Liberation Day" Sparks Global Market Turmoil
On April 2, 2025, President Trump declared a so-called “Liberation Day,” imposing a blanket 10% tariff on all imports, with higher rates targeting specific regions—34% on China and 20% on the European Union. The announcement triggered a sharp sell-off in global markets.
The Dow Jones Industrial Average plunged more than 1,600 points in a single day, and the Nasdaq fell by 5.8%, pushing markets firmly into bear territory.
Bond Yields Surge, Dollar Sinks, Volatility Rises
Losses extended beyond equities. Yields on 10-year U.S. Treasury bonds climbed to 4.5%—the highest since 1982—as foreign investors offloaded U.S. assets amid growing concerns over American fiscal policy. The U.S. Dollar Index also slumped by 8%, reaching its lowest level in three years, fueling worries about the long-term stability of U.S. financial markets
Safe Havens Outside the U.S. Gain Investor Appeal
Amid heightened market turbulence, investors sought refuge in safe-haven assets beyond U.S. borders. Gold surged 26% year-to-date, while the Swiss franc and German government bonds also saw increased inflows. European and Asian markets outperformed their U.S. counterparts, as global investors rebalanced portfolios away from U.S. assets
Gloomy Outlook Ahead
The dismal performance has amplified fears of a looming recession in the U.S., especially as consumer and business confidence falters. The CBOE Volatility Index (VIX) spiked to levels unseen since the onset of the COVID-19 pandemic. Despite the administration’s attempts to reassure markets by hinting at potential new trade agreements, uncertainty continues to dominate the economic landscape.
These developments reflect the serious challenges facing the U.S. economy under current trade strategies and underscore the urgent need for a policy recalibration to restore market stability and investor confidence.