Stocks Suffer Historic $9.6 Trillion Loss Since Inauguration as Two‑Day Rout Sets Record
Washington, D.C., April 6, 2025 — U.S. equity markets have endured a staggering $9.6 trillion in value losses since Jan. 17, the Friday before President Donald Trump’s second‑term inauguration, with a record‑setting $5 trillion erased over the past two trading days alone. MarketWatch
The carnage unfolded rapidly on Thursday and Friday, leaving major benchmarks deeply in the red. The Dow Jones Industrial Average plunged 2,231.07 points to 38,314.86 (–5.50%), the S&P 500 fell 322.44 points to 5,074.08 (–5.97%), the Nasdaq Composite slid 962.82 points to 15,587.79 (–5.82%), and the Russell 2000 declined 83.51 points to 1,827.03 (–4.37%) (user‑provided data).
This two‑day downturn ranks among the most severe in market history, with the S&P 500’s 10.5% drop over 48 hours marking its fourth‑largest such decline since the index’s inception in 1957. WSJ
Tariff Turmoil Triggers Sell‑Off
Analysts point squarely to President Trump’s “Liberation Day” tariff announcement on April 2, which imposes a 10% baseline levy on all imports—escalating to 50% on goods from key trading partners—as the catalyst for the sell‑off. The move, the highest U.S. tariffs in over a century, has stoked fears of a global recession and disrupted supply chains worldwide. Reuters
JPMorgan has raised its probability of a global downturn to 60%, while the Cboe Volatility Index (VIX) surged to its highest level in four years. Market participants are bracing for retaliatory tariffs, with China already signaling a 34% levy on U.S. exports in response. Reuters
Wall Street Voices Alarm
CNBC host Jim Cramer warned investors of a potential “Black Monday”‑style collapse, likening current conditions to the historic 1987 crash. Cramer noted that tariffs have already wiped out roughly $6.6 trillion in market capitalization over two days, and he threatened to withdraw his support for the policy if volatility persists and the administration remains inflexible. NYPost
Economic Implications
Economists caution that higher import duties will translate into steeper prices for consumers, effectively functioning as a regressive “national sales tax.” Federal Reserve Chair Jerome Powell has acknowledged that the tariffs risk elevating inflation and slowing growth, underscoring the delicate balancing act facing policymakers. Reuters
Looking Ahead
With investors awaiting upcoming corporate earnings reports and the April Consumer Price Index, market watchers will be closely monitoring whether the Fed opts to cut interest rates to cushion the blow. For now, uncertainty reigns as the intersection of policy‑driven shocks and geopolitical tit‑for‑tat measures continues to roil financial markets.
