Stocks Sink as Tariff Hopes Fade: Dow Drops 300 After 1,400-Pt Reversal

U.S. stocks closed sharply lower in another volatile session after the White House dashed hopes for a softer tariff approach, sparking a dramatic reversal. The Dow Jones Industrial Average erased an early 1,400-point surge, ending down 320 points, while the S&P 500 and Nasdaq fell 1.6% and 2.2%, respectively.

The sell-off accelerated after U.S. Trade Representative Jamieson Greer confirmed no exemptions would be granted for new global tariffs, followed by White House plans to impose 104% duties on Chinese goods at midnight. Additional reciprocal tariffs on other nations will also take effect.

Earlier optimism faded despite signals of potential negotiations with South Korea and China, as Beijing vowed to “fight to the end” against U.S. trade actions. The EU also warned of retaliation while preparing for talks.

Trading volume hit an 18-year high as stocks whipsawed on conflicting reports, including a retracted claim of a 90-day tariff delay. Despite the plunge, retail investors bought aggressively, with JPMorgan and Bank of America noting record net inflows into equities, particularly in tech giants like Apple, Nvidia, and Amazon.

Apple shares, despite being flagged as a buying opportunity, closed 6.6% lower. Treasury yields rose, with the 10-year note reaching 4.28%. Analysts suggest the market remains reactive to trade policy shifts, with volatility likely to persist.