Roughly $2.5 trillion was erased from the S&P 500 Index on Thursday amid worries that President Donald Trump’s sweeping new round of tariffs could plunge the economy into a recession.

US stocks plunged after President Trump announced a baseline 10% tariff on all US trading partners, sending shockwaves through markets and the global trade order.

Companies whose supply chains are most dependent on overseas manufacturing will be the most impacted. Apple Inc., which makes the majority of its US-sold devices in China, is likely to open 7.7 per cent lower at trade.

S&P 500 companies lost a combined $2.4 trillion in stock market value in Thursday's selloff, their biggest one-day loss since the pandemic sent global markets into a tailspin on March 16, 2020.

U.S. futures indexes fell sharply early on Thursday, led by a deep slide in major tech stocks, while global markets also faced a major selloff after President Donald Trump’s sweeping reciprocal tariffs raised fears of a global trade war and recession.

The dollar slumped on Thursday and global stock markets dropped as investors rushed to price in growing damage to the world’s biggest economy from Donald Trump’s trade war. The dollar fell 2.1 per cent against a basket of trading partners’ currencies,