S&P 500 shows strongest drop since COVID-19 pandemic amid new US tariffs

The US stock market saw the biggest drop in stocks since the COVID-19 pandemic. Total losses amounted to $2.5 trillion, while the S&P 500 index fell by 4.8%. The main reason for this decline was the new tariffs imposed by US President Donald Trump. His measures caused concerns among investors about a possible recession in the country and forced them to turn to safe haven assets such as bonds and yen.

As Bloomberg writes, on Wednesday, Trump imposed the toughest tariffs in the last century. According to the American president's statement, the country will apply 10% levies on all exports to the US and even higher duties on about 60 countries. 

On Friday, employment data is expected to be released in the United States. According to Julie Biehl of Kayne Anderson Rudnick, this report will give investors an idea of how strong the labor market was before the imposition of tariffs. As Bloomberg reports, the data will have a significant impact on bonds, stocks, and currencies, as well as the Federal Reserve's future actions.