S&P 500 sinks into bear market as US stocks spiral on economic fears

US stocks collapsed, Bloomberg reported. The S&P 500 index fell another 3.7% in morning trading, extending a two-day decline of 10%, its worst since 1960. The Nasdaq 100 and Russell 2000 dropped 4.4% and nearly 5%, respectively. The US stock market experienced record losses totaling $6 trillion.

Despite warnings of an impending recession, the administration of American President Donald Trump has continued to push forward with its tariff measures. Officials, including Treasury Secretary Scott Bessant, have downplayed investor concerns about rising inflation and slowing economic growth in the United States. Meanwhile, the Cboe Volatility Index (VIX) surged past 45, reaching its highest level since 2020.

The market's sharp two-day decline was triggered by President Trump's sweeping trade tariffs and retaliatory actions from trading partners. This collapse wiped out months of steady gains in US stocks and sent shockwaves through global markets, with large corporations bearing the brunt of the losses. Shares of Apple Inc. and Caterpillar Inc. plunged 16% and 14%, respectively, over just 48 hours, as reported by Bloomberg.