Stocks opened sharply lower for a second day in a row as China retaliated against US tariffs in an escalating trade war while Wall Street analysts sounded the alarms about the rising risk of a recession.
The Dow Jones Industrial Average (^DJI) sank around 2.2%, or about 1,000 points while the S&P 500 (^GSPC) also plummeted about 2.3%. The tech-heavy Nasdaq Composite (^IXIC) dropped more than 2.8% after all three major averages suffered their worst day since 2020.
China announced retaliatory tariffs against US-made imports in reaction to President Trump’s escalated tariffs revealed on Wednesday.
Trump’s retaliatory tariff announcement on Wednesday sparked fears of a trade war and the risk of a recession.
“The tariffs, if they stay in place, would be a big hit to the US and global growth, likely pushing the US and global economy into recession this year,” wrote JPMorgan’s Natasha Kaneva on Friday morning.
Oil tanked more than 7% in early trading as the fear of cratering demand rose.
Read More: Dow, S&P 500, Nasdaq crater after China announces first retaliatory tariffs
