US stock market loses $11 trillion amid tariff shock, marking worst start to presidency in decades

Since January 17, just before US President Donald Trump began his second term, approximately $11.1 trillion has been erased from the US stock market, based on data from Dow Jones Market Data.

Thursday and Friday alone saw losses of about $6.6 trillion, marking the largest two-day decline in shareholder value on record according to Dow Jones.

The sharp downturn was sparked by surprise announcements of significant global tariffs by President Trump, far exceeding market expectations. Investors were left unprepared and financial markets have since pressured the administration to reconsider or make substantial progress toward resolving these tariffs, noted Kathleen Brooks, research director at XTB.

Despite a positive March jobs report, concerns over a potential recession persisted, exacerbated by fears of escalating trade tensions where the US might not back down. This sentiment, shared by Jay Woods of Freedom Capital Markets, warned of severe repercussions on the tech sector and overall economy, potentially ending the current bull market.

By Friday’s close, the S&P 500 had surpassed losses seen in the early days of George W Bush’s first term, with the Russell 2000 index experiencing its most turbulent start under a new administration on record.

The Dow Jones Industrial Average fell by 11.9%, and the S&P 500 by 15.4% since Inauguration Day, while the Nasdaq Composite and Russell 2000 entered bear market territory with declines exceeding 22% and 25%, respectively, from recent highs.

Despite historical trends showing stronger market performance in later years of a presidential term, the severe initial decline under President Trump’s administration is notably extreme, according to Ryan Detrick of Carson Group.