The U.S.-China tariff conflict has escalated, leading to a plunge of 2,231 points in the Dow Jones Industrial Average, while TSMC's ADR dropped by 6.72%.
The Dow Jones Industrial Average fell 2,231.07 points on Friday, marking a decline of over 1,500 points for two consecutive days, as the U.S. tariff policy toward China raised concerns about the global economy. The S&P 500 index and the Nasdaq index were also severely impacted, falling 5.97% and 5.82%, respectively, entering a bear market, with a market value loss of $5 trillion over two days. Technology stocks performed poorly, with Apple, Nvidia, and Tesla experiencing significant declines, particularly Apple, which saw a cumulative drop of 13% this week. China announced a new 34% tariff on U.S. goods, disappointing investors and squashing hopes for dialogue. Trump stated that he would not change his policy.
The Dow Jones Industrial Average fell by 2231.07 points on Friday, marking the first time since the drop of 1679 points on Thursday that it has fallen more than 1500 points for two consecutive days.
The U.S. President's tariff policy has impacted the global economy, as mainland China retaliated by imposing new tariffs on U.S. goods, resulting in investor concerns about a potential trade war and economic recession.
The Dow Jones Industrial Average dropped by 2231.07 points on Friday, a decline of 5.5%, closing at 38314.86 points. The S&P 500 index also fell by 5.97% on the same day, and has now decreased by over 17% from its recent high.
In just two days, the U.S. stock market has lost a value of 5 trillion dollars.
The Nasdaq index fell by 5.82% on Friday, officially entering bear market territory.
The Philadelphia Semiconductor Index experienced a decline of 7.6%.
Tech stocks performed poorly on Friday, with Apple’s stock plummeting by 7.29%, bringing its total decline for the week to 13%.
Nvidia fell by 7.36%, while electric vehicle manufacturer Tesla dropped by 10.42%, with these three companies having significant business operations in mainland China, making them the first to be affected by the tariffs.
TSMC's ADR plummeted by 6.72%, closing at 146.80 dollars.
Trump's announced reciprocal tariff policy on Wednesday faced strong opposition, with the Chinese Ministry of Commerce stating they would impose a 34% tariff on all U.S. products, squashing investor hopes for negotiations.
Trump reiterated on social media that "the policy will never change."
U.S. stock market closing data on Friday: The Dow Jones Industrial Average fell by 2231.07 points to 38314.86 points, the Nasdaq index dropped by 962.82 points to 15587.79 points, the S&P 500 index decreased by 322.44 points to 5074.08 points, and the Philadelphia Semiconductor Index fell by 296.03 points to 3597.66 points.
