Investors were hoping for clarity on April 2. Instead, they now face more uncertainty over retaliatory tariffs, economic growth and inflation.

Stocks dived on Thursday and investors scrambled for the safety of bonds, gold and the yen, fearing new U.S. tariffs have intensified a trade war threatening to tip the world into recession.

The S&P 500 Index is on the brink of a crucial technical inflection point that threatens a longer-term wipeout after President Donald Trump imposed the steepest American tariffs in a century.

Stocks plummeted Thursday in reaction to a widening global trade war. With few parallels in history, markets are wondering where things go from here.

U.S. markets plunged in the wake of President Trump's announcement of new tariffs. Many stocks had their worst single day since the start of the pandemic in 2020. Leaders around the world denounced the tariffs and experts warned the president's action could risk more inflation,

Volatility is often measured by the Chicago Board Options Exchange's CBOE Volatility Index. Experts currently expect volatility in the markets to persist, as few expect this week to mark the end of Trump’s use of tariffs and tariff threats.

Tariff uncertainty and a flagging tech trade dragged the S&P 500 and Nasdaq lower to start 2025.