Global markets ended the week in turmoil as a massive sell‑off erased roughly $1.65 trillion from the U.S. stock market’s total value on Friday, marking one of the steepest one‑day declines of 2025.
The sell‑off was triggered by a surge in trade war fears after the White House hinted at new tariffs on Chinese imports, sparking a global wave of risk aversion.
The S&P 500 plunged 1.35%, while the Nasdaq tumbled over 2%, led by sharp losses in technology and consumer sectors. Tesla dropped 4.55%, Amazon slid 4.34%, and Nvidia fell 3.79%, extending a week‑long decline that has wiped billions off their combined market caps. Apple also shed nearly 3%, deepening concerns that the correction in mega‑cap tech is far from over.
Semiconductor stocks were among the hardest hit, with AMD down 7% and Broadcom falling over 5%, as investors reassessed the impact of potential Chinese export restrictions on rare earth elements used in chip production. Microsoft and Alphabet (Google) were not spared, slipping 1.77% and 1.69% respectively, while Meta dropped more than 3%.
Financial and energy shares also declined as JPMorgan Chase, ExxonMobil, and Chevron all closed lower. Even defensive names such as Johnson & Johnson and Procter & Gamble saw red, underscoring the breadth of the market downturn.
Still, a few stocks managed to resist the sell‑off. Walmart edged up 0.4%, supported by strong retail data, while Eli Lilly gained modestly in the healthcare sector. However, these small victories did little to offset the sweeping losses across U.S. equities.
Analysts warn that market volatility may persist next week as investors digest the White House’s trade stance and monitor upcoming inflation data. With more than $1.6 trillion wiped out in a single session, Friday’s collapse serves as a stark reminder of how quickly investor confidence can evaporate amid geopolitical uncertainty.