• The mass tariffs President Donald Trump announced last week sent the stock market tumbling.
• The S&P 500 and Nasdaq are now in a bear market.
• Economist and financial institutions are even more concerned about the possibility of a recession in the U.S.

This story has been updated with new information.

President Donald Trump's mass tariffs have sent the stock market tumbling in recent days and has sparked vocal concerns from economists and financial institutions over what will happen to America's economy.

On Wednesday, Trump announced mass global tariffs on imports from a majority of countries and longtime allies. Thursday and Friday, the U.S. stock market cratered, erasing over $5 trillion in market value in the S&P 500 for the two trading days.

On Friday, the Dow Jones closed nearly 8% down, the S&P closed over 9% down and the NASDAQ closed 10% down.

"What's going to happen with the market? I can't tell you," Trump said aboard Air Force One as he returned from Mar-a-Lago. "But I can tell you our country has gotten a lot stronger, and eventually, it'll be a country like no other."

Stock markets nosedive after Trump's tariff announcement

Here's a look at how stock plummeted after Trump's announcement on Wednesday.

How much has the stock market fallen since Trump took office?

After the November 2024 election, the stock market hit an all-time high, with conservative media pundits claiming that it showed the promise of a prosperous economy during Trump's second term in office.

Since Trump took office, the stock market has taken a tumble, falling even further after his tariffs announcement.

By the time markets closed Friday, the Dow posted back-to-back losses of more than 1,500 points for the first time ever, including a 2,231-point freefall on Friday, according to reports from USA TODAY. The S&P 500 posted its biggest one-day loss since March 2020, the start of the COVID-19 pandemic, on Friday.

Where did the stock market open Tuesday?

Tuesday morning had the stock market in slightly better shape than the last few opening days.

Here's how the market opened, according to reports from USA TODAY.

• Blue-chip Dow jumped 3.3%, or 1,252.02 points, to 39,217.62
• S&P 500 added 3.17%, or 160.27 points, to 5,222.52
• Tech-heavy Nasdaq gained 3.71%, or 578.96 points, to 16,182.23
• The benchmark 10-year Treasury yield rose to 4.245%

This is a huge jump for the market after three days of falling, after Trump announced his tariffs. Monday was a bit of a rollercoaster day with the market opening low before a brief pop up as now withdrawn report of Trump giving a 90-day break in tariffs circulated. It took another dive when Trump threatened to levy an additional 50% tax on China.

What is a bear market?

Monday brought an even bleaker outlook for the S&P 500 when it went into a bear market.

Going into a bear market means that the market dipped at least 20% below its recent peak. The tech-heavy Nasdaq was already in a bear market, reported USA Today.

Trump threatens China with higher tariffs if they don't back down

On Friday, China countered Trump's imposed tariffs with some of their own. The country announced it would impose reciprocal 34% tariffs on all imports from the U.S.

Trump went on a tirade on his ongoing trade war on Truth social network Monday, giving China an ultimatum of getting rid of their reciprocal tariffs or face more from the U.S.

“If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump said. “Additionally, all talks with China concerning their requested meetings with us will be terminated!”

How much were tariffs before Trump took office?

The average U.S. tariff rate was about 3% before Trump took office.

What are the odds the US will go into a recession?

The odds are going up, and one forecaster is predicting it outright.

The average tariff imposed by Trump on Wednesday is about 20%. If it is imposed and kept in place for more than a few months, and U.S. trading partners retaliate in kind, “the U.S. and global economies will not suffer a depression, but they will suffer serious recessions,” Mark Zandi, chief economist of Moody’s Analytics, said.

Investment giants like Goldman Sachs and JP Morgan Chase have increased the likelihood that the United States will enter a downturn in the near future. Here's a look at the latest odds, according to Reuters.

• S&P Global puts recession odds at 30-35%
• Goldman Sachs has a 45% chance of a downturn, up from 20% about a month ago
• JPMorgan Chase has a 60% chance of a downturn, up from 40% about a month ago

What is a recession?

According to the nonprofit National Bureau of Economic Research, a recession is “a significant decline in economic activity that is spread across the economy and lasts more than a few months." Informally, a country could be considered to be in a recession when it has at least two straight quarters of declining economic output happen.

The measure is based on multiple criteria including:

• Employment
• Income
• Consumer spending
• Industrial production

A recession is also marked with hundreds of thousands, if not millions, in job losses.