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Following a significant market drop on Thursday due to tariff announcements affecting multiple U.S. trading partners, President Donald Trump downplayed the situation while speaking with reporters just before boarding Air Force One for his trip to Miami.
What Occurred: President Trump likened the stock market’s downturn to a surgical procedure, stating, “I believe it’s progressing well, it was like an operation… It’s a major event. I predicted this outcome. We are seeing $6-$7 trillion inflow into our country, which is unprecedented.”
“The market is poised to thrive, stocks will surge, the nation will prosper, and the world is eager to explore potential deals,” he added.
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These assertions came in the wake of the U.S. experiencing its most significant single-day stock market decline since 2020. The Dow Jones and S&P 500 endured their harshest trading day since June 2020, while the Nasdaq faced its steepest drop since March 2020. The Dow’s 1,679-point plummet marked the fifth-worst drop in its history.
Why This Matters: In a move to address the trade deficit of the United States, Trump invoked a 1977 statute to officially declare a trade emergency, leading to the introduction of new tariffs on Wednesday.
He enforced a comprehensive 10% tariff on all trading partners and imposed additional duties on nations he characterized as “bad actors.”
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Notably, China, Vietnam, Cambodia, and Sri Lanka are facing the highest tariffs, while Canada and Mexico will remain exempt.
The primary indices have entered correction territory, defined as a drop exceeding 10% from their recent highs.
The S&P 500 index reached a high of 6,147.43 points on February 19th, and has since decreased by 12.22%. In contrast, the Nasdaq 100 has experienced a more severe decline of 16.65% from its 52-week peak of 22,222.61 points, approaching the -20% threshold that indicates a bear market.
