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Wall Street Suffers Significant Decline Amid Tariff Concerns

Stocks experienced a sharp decline on Friday, compounding the losses from the previous day and marking one of the most challenging weeks for the market in the last two decades.

Initially, investors approached the week with a degree of optimism, anticipating clarity from the reciprocal tariffs that were expected to be announced on Wednesday. However, the severity and extent of these tariffs took market participants by surprise, leading to significant financial repercussions. Projections suggest that the effective tariff rate in the U.S. could reach its highest point in over a century. Economists indicate that such high tariffs could severely curtail economic growth and reignite inflationary pressures.

This week’s market turmoil has been particularly notable, characterized by numbers that illustrate the extent of the downturn:

• The S&P 500 experienced a dramatic decline of 10.5% over Thursday and Friday, marking its worst two-day performance since March 2020 and the third worst since the early 2000s. Furthermore, the index’s weekly drop of 9.1% ranks as the seventh worst in the past 25 years.
• The Dow Jones Industrial Average recorded a weekly decline of 7.9%, marking the sixth worst week of the 21st century, with a staggering 9.3% drop over the final two days.
• On Friday alone, the Dow fell by 2,231 points, representing the third largest point drop in its history.
• The Nasdaq Composite dropped 11.4% following the announcement of the tariffs, experiencing its worst two-day stretch since March 2020.
• Apple Inc. (AAPL), the world’s leading company by market capitalization, saw its stock price plummet by 15.9% since the close on Wednesday, marking its most significant two-day loss since September 2008. This downturn erased more than $500 billion from Apple’s total market valuation.
• During the week, 31 companies within the S&P 500 saw their stock price decline by over 20%. Almost half of the index, or 247 companies, suffered losses of 10% or more.
• Only 21 stocks within the S&P 500 finished the week on a positive note, predominantly within the healthcare and utilities sectors; just 14 stocks managed to rise on Friday.
• Nike (NKE) was an exception, increasing by 3% on Friday, making it the sole member of the Dow to end the week with a gain, although its overall performance was still down by 10% for the week.
• Interestingly, companies with minimal direct exposure to tariffs also faced substantial losses. For instance, Palantir Technologies (PLTR) dropped 14% during the week. Other firms, like DoorDash (DASH) and Netflix (NFLX), which do not produce physical goods subject to tariffs, saw their shares decline by about 11% and 8%, respectively.

This downturn highlights broader concerns about the potential repercussions of aggressive tariff policies on the overall economy, with market participants now grappling with the uncertainty that these measures introduce.

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