S&P 500 Suffers Worst Two-Day Plunge Since 2020 Amid Tariff Shock

S&P 500 Suffers Worst Two-Day Plunge Since 2020 Amid Tariff Shock

Key Highlights:

• The S&P 500 fell 10.5% over two trading sessions, triggered by sweeping tariffs announced by former President Donald Trump.

• This marks just the fourth time since World War II the index has dropped more than 10% in two days.

• Other historical drops occurred during the Covid-19 crash (March 2020), the Global Financial Crisis (November 2008), and Black Monday (October 1987).

• Nearly $5 trillion in market value was wiped out, signaling deep investor panic.

• S&P 500 futures have now plunged over 20% from their peak, indicating a potential bear market if the index closes at these levels.

President Trump’s aggressive new tariffs sent shockwaves through the market last week, leading to a historic two-day decline in the S&P 500. The benchmark index dropped 10.5% on Thursday and Friday, marking one of the steepest back-to-back selloffs since World War II, according to strategists at Deutsche Bank.

Only three other times has the S&P 500—or its predecessor—seen such a drastic two-day plunge:

• March 2020, during the onset of the Covid-19 pandemic

• November 2008, amid the global financial crisis

• October 1987, during the Black Monday stock market crash

In just two sessions, nearly $5 trillion in market value was erased.

Speaking to reporters late Sunday, Trump defended the tariffs, saying Americans would have to endure the short-term pain. He also stated he would not negotiate with China until the U.S. trade deficit is resolved.

As a result of the selloff, S&P 500 futures dropped over 20% from their recent peak, suggesting the index is officially in bear market territory if this trend continues.