Meanwhile, the Dow Jones Industrial Average fell 2,231.07 points, or 5.50 per cent, to 38,314.86 points, confirming a correction to its record closing high of 45,014.04 on Dec 4.
The S&P 500 lost 322.44 points, or 5.97 per cent, to close at 5,074.08 points, its lowest finish in 11 months.
“Right now, how bad it gets depends on how committed the administration is to this set of policies which, clearly, the market is voting against,” said Steve Sosnick, chief strategist at Interactive Brokers.
Global governments began reacting to Trump’s tariff announcement on Friday, further undermining investor sentiment that a global recession could be averted. JP Morgan said it was forecasting a 60 per cent chance of the global economy entering a recession by year-end, up from 40 per cent previously.
“We’re in the Wild West of a trade war right now,” said Mariam Adams, managing director at UBS Wealth Management.
For the week, the S&P 500 fell 9.1 per cent, the Dow declined 7.9 per cent, and the Nasdaq slumped 10 per cent.
