Investor concerns about a potential trade war triggered by President Trump’s unexpectedly aggressive tariff plan have rattled financial markets, resulting in significant losses across various sectors. On Thursday, major U.S. stock indices experienced sharp declines, with the Nasdaq losing 5.97%, marking its largest single-day drop since March 2020, followed by a 4.84% decrease in the S&P 500 and a 3.98% decline in the Dow Jones Industrial Average, both witnessing their biggest drops since June 2020. Large tech companies, anticipating supply chain disruptions, were particularly hit, with Apple dropping over 9%. This collective market downturn led to a loss of approximately $1 trillion in the combined value of the ‘Magnificent 7’ tech giants within a single day, reaching its lowest point since early August last year. 48% drop in crypto markets. The cryptocurrency market also experienced declines with Bitcoin falling from a pre-tariff announcement high of $88,000 to below $81,000. While more resilient than tech stocks, the overall cryptocurrency market capitalization dropped nearly 8%. This decline was accompanied by a surge in ‘extreme fear’ based on the crypto fear and greed index following March’s recovery. Forex and commodity markets were also affected as the U.S. dollar index decreased 1.61%, reaching its lowest level since October 2024, erasing all gains from Trump’s election. Oil prices plummeted by nearly 7%, the largest single-day drop since July 2022. Spot gold, on the other hand, remained relatively stable and showed little change from the previous trading day. The market turmoil is expected to intensify as the upcoming release of the March non-farm payroll report and the Federal Reserve Chair Jerome Powell’s speech add further uncertainty. The CME FedWatch tool indicates traders have heightened pessimism regarding the U.S. economic outlook, leading to an increased probability of emergency rate cuts by the Federal Reserve. Traders now anticipate up to four rate cuts this year, a significant increase from two predictions only last month.