Global stock market crash is coming! The China-US trade war is heating up, and the US stock market has hit its largest fall in years.

Tech stocks lead the decline, and the fear index surges past 40, as Wall Street worries about falling into a Bear Market and recession storm.

The US stock market suffered a sharp decline for the second consecutive day, as China announced new tariffs on American goods, igniting fears of an escalation in the global trade war. As investors worry that the Trump administration's hardline stance will lead to a global economic downturn, all three major stock indices fell sharply, marking the worst decline since the outbreak of the COVID-19 pandemic.

The Dow Jones fell by more than 2200 points, with the US stock market experiencing record declines for two consecutive days.

On Friday, the Dow Jones Industrial Average plummeted by 2,231.07 points, a decline of 5.5%, closing at 38,314.86 points, marking the largest single-day drop since the peak of the pandemic in June 2020. This is the second consecutive day of significant losses for the Dow, which had already fallen by 1,679 points on Thursday, setting a historical record for the first time that it has dropped more than 1,500 points on two consecutive days.

The S&P 500 index also fell sharply by 5.97%, closing at 5,074.08 points, marking the worst single-day performance since March 2020. Over the past two days, it has fallen more than 10%, retreating over 17% from recent highs, entering a technical correction zone.

The Nasdaq Composite Index also suffered a brutal sell-off, plummeting 5.8% to 15,587.79 points on Friday. This marks nearly a 12% decline for the index over two consecutive days, and it has fallen over 22% from its peak in December last year, officially entering a Bear Market.

China imposes a 34% retaliatory tariff, US-China tensions escalate

The main reason for the drastic fluctuations in the market is that the Chinese Ministry of Commerce announced on Friday that it would impose retaliatory tariffs of up to 34% on all American goods, directly responding to the tariff measures announced by the Trump administration earlier. The market initially hoped that there would still be room for negotiation between the two sides, but China's move clearly indicates a "hard confrontation," causing investors' confidence to collapse.

Tech giants suffered heavy losses, with Apple and NVIDIA both experiencing weekly declines of over 10%.

Friday's market sell-off was led by technology stocks. Apple's stock price fell 7% in a single day, accumulating a 13% drop for the week. AI leader NVIDIA also plummeted 7%, while Tesla saw a significant drop of 10%. All three companies have substantial business in the Chinese market, making them direct victims of Beijing's retaliatory tariffs.

Other companies that heavily rely on exports to China have also suffered. Boeing fell by 9%, and heavy machinery manufacturer Caterpillar dropped nearly 6%, becoming the two main culprits dragging down the Dow.

Beijing upgrades retaliatory measures and initiates antitrust investigations against American companies.

China's retaliatory actions extend beyond tariffs. On the same day, Beijing placed several American companies on the "unreliable entity list" on the grounds that these companies violated market rules or failed to fulfill contracts. Additionally, China has initiated an antitrust investigation against American chemical giant DuPont, causing DuPont's stock price to plummet nearly 13%.

These actions further undermined market confidence and raised concerns among investors that the China-U.S. conflict has entered a stage of full economic confrontation.

Panic spreads, capital flows into the bond market for safety.

As market panic intensifies, investors are increasingly shifting towards safe-haven assets such as government bonds. The yield on the 10-year U.S. Treasury bond fell below 4% on Friday, indicating a rapid influx of funds into the bond market. At the same time, the CBOE Volatility Index (VIX), which measures market fear, surged to over 40, a level that only occurs during extreme conditions when the stock market is sharply crashing.

Trump sticks to his tariff stance, and the market is worried about further escalation over the weekend.

Despite the market experiencing a brutal fall for two consecutive days, former U.S. President Trump remains defiant. He posted on Truth Social on Friday, stating, "My policies never change." Market experts are concerned that as the weekend approaches, the trade war may continue to escalate, and the U.S. side clearly has no intention of backing down.

"What the market fears the most is that this trade war will continue to escalate, and the United States has no room for maneuver," said Jay Woods, Global Strategist at Freedom Capital Markets.

The US stock market was bleak this week, recording the worst weekly performance since the pandemic.

After a week of intense volatility, the S&P 500 index fell by as much as 9% over the week, marking the worst single-week performance since the early days of the COVID-19 pandemic in 2020. Investors are worried that if the trade war continues to escalate, the global economy will fall into a prolonged recession, and the stock market Bear Market has only just begun.

As Emily Bowersock Hill, CEO of investment firm Bowersock Capital Partners, stated: "This bull market is over, destroyed by ideology and self-destructive policies. While it may hit the bottom in the short term, in the long run, the damage to the economy from the global trade war will be very profound."

This article reports that a global stock market crash is coming! The China-U.S. trade war is intensifying, and the U.S. stock market has seen its largest fall in years, first appearing in Chain News ABMedia.