Trillions wiped from the economy and Americans' pensions as stock markets tank following Donald Trump's tariffs; here's what you need to know

Wall Street opened to an ocean of red as 10 stocks fell for each that rose, reported Daily Mail. By midday, the S&P 500 lost 4.37%, the Nasdaq declined by 5.59%, and the Dow Jones fell by 3.74%, sending all three major indexes on their way to their worst day since the pandemic, Daily Mail reported.

For ordinary Americans, this market decline is not just a business news story, it's a personal hit to their retirement funds, such as 401(k)s, that depend on the market, according to the report. The massive decline in stock prices has erased trillions from the US stocks, Daily Mail reported.

Retail Prices Likely to Increase

Apart from the financial market instability, retail analysts warn that the tariffs would find their way into the pockets of consumers, as per the report. As the tariffs are high, businesses will add the additional costs to consumers by increasing the prices of goods, according to Daily Mail. The most affected businesses are businesses that use a lot of imports, especially affordable products from Asia, which may now be faced with tariffs as much as 54%, reported Daily Mail.

Tech and Retail Stocks Take the Hit

Some of the largest companies had their stock prices decrease even more. Retailers Five Below and Wayfair experienced falls of 29%, while giants such as Ralph Lauren, Dockers, and Dell fell 17%, Daily Mail reported. Nike fell 12% and Apple dropped 8%, as per the report.

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Fed's Response

As stock futures plummeted, Wall Street hoped that the Federal Reserve would rapidly lower interest rates to mitigate the harm, according to the report. But Federal Reserve board member Philip Jefferson claimed that there were no plans to change track on the two planned cuts for this year, Daily Mail