In an unprecedented wave of wealth destruction, the world’s 500 richest individuals lost a staggering $500 billion over two days, marking the largest two-day decline ever recorded by the Bloomberg Billionaires Index. The carnage was set off by U.S. President Donald Trump’s sweeping tariff measures, which triggered a full-blown sell-off in global markets.
On April 3, Bloomberg reported a one-day wealth erosion of $208 billion, the fourth-largest daily drop in the index’s 13-year history. By midday April 4, the cumulative losses had reached approximately $485 billion, with updated figures by market close pushing that number to nearly $500 billion.
The trigger? Trump’s imposition of a 10% baseline tariff on all U.S. imports, paired with steeper duties on trading partners with significant surpluses — including a 34% tariff on Chinese goods. China swiftly retaliated with identical levies, fueling fears of a global trade war.
The U.S. markets responded with a brutal nosedive. The Dow Jones Industrial Average plunged 2,178.68 points, or 5.37%, to close at 38,367.25 — its worst single-day loss since the pandemic selloff in June 2020. The Nasdaq Composite sank 5.5%, following a 6% slide Thursday, officially entering bear market territory — down 22% from its December highs. The S&P 500 fell 5.4%, capping its worst week since 2020.
Heavyweight exporters and tech giants were hit the hardest. Boeing and Caterpillar tumbled 9% and 6% respectively. Apple’s stock dropped another 7%, closing out the week with a 13% decline. Nvidia fell 8%, and Tesla dropped 10%, as investor panic intensified.
Adding to the turmoil, China’s commerce ministry blacklisted multiple American firms and launched an antitrust probe into DuPont, sending its shares 12% lower.
Amid the financial fallout, Federal Reserve Chair Jerome Powell addressed the uncertainty. Speaking in Arlington, Virginia, Powell warned that the economic effects of Trump’s tariffs will likely include “higher inflation and slower growth.”
“Our obligation is to keep longer-term inflation expectations well anchored,” Powell said. “We are well positioned to wait for greater clarity before considering any adjustments to our policy stance.”
Despite Trump’s calls for immediate rate cuts, Powell refrained from responding directly, stating, “It’s just not appropriate for me.”
Market data from CME Group now shows expectations of at least a 1% rate cut from the Fed by year-end, as fears of a recession gain momentum.
With volatility spiking, investor sentiment crumbling, and diplomatic tensions flaring, global markets are left bracing for what could be a prolonged and painful trade standoff.
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