The Stock Market Is Still Down Since ‘Liberation Day’

The stock market has been on a rollercoaster ride since President Trump's "Liberation Day" tariff announcement on April 2, 2025. The initial shockwave sent markets plummeting, and while there have been brief rallies, the overall trend remains bearish. The S&P 500, Nasdaq, and Dow Jones have all experienced significant declines, with the tech-heavy Nasdaq even entering a bear market. The uncertainty surrounding the tariffs has created a climate of fear and volatility, with investors scrambling to adjust their portfolios.



The immediate impact of the tariffs was devastating. On April 11, 2025, U.S. stock markets ended their worst day in five years. The Dow Jones fell almost 1,700 points, while the Nasdaq and S&P 500 saw even worse percentage-wise declines. Investors sold off a wide range of assets, from stocks to oil and even gold. The investment bank JP Morgan warned that if the tariffs are sustained, they could push both the U.S. and the global economy into a recession.

The uncertainty surrounding the tariffs has been a significant driver of market volatility. Investors are grappling with the unknown endgame of Trump's tariff policies. Chris Fasciano, the chief market strategist for Commonwealth Financial Network, noted, "There's just so much uncertainty out there about what the endgame is and what things are going to look like that until that's understood, I think it's really hard for consumers to make decisions about their spending patterns." This uncertainty has made it difficult for businesses and investors to plan for the future.

The sectors most affected by the tariffs include retail, energy, small businesses, and tech companies. Retailers like Nike, Apple, and Amazon have seen significant drops in their stock prices due to their reliance on imported goods. Nike's stock plummeted 40% after the tariff announcement, while Apple and Amazon also experienced substantial losses. The energy sector has also been impacted, with oil prices falling due to the uncertainty caused by the tariffs.

Tech companies have been particularly hard hit, with stocks like Tesla and Nvidia experiencing significant losses. Tesla's stock has fallen 35.8% year-to-date, while Nvidia's stock has declined 19.3%. The criticism that their stock prices had become too expensive, combined with the uncertainty surrounding the tariffs, has led to a sell-off in these high-growth sectors.

The long-term effects of the tariffs on the economy are concerning. Consumers are likely to face higher prices for a wide range of products, from cars to groceries. Some products, like coffee or bananas, cannot be grown in the U.S. in the same quantities needed, so consumers will face higher prices regardless of the tariffs' intended benefits. The increased cost of imported goods is expected to hike prices for consumers and create lasting economic damage.

For recent and soon-to-be retirees, the stock market's volatility is particularly worrisome. The stock market is one of the only methods to keep up with increasing prices and inflation in the long term. However, as trust in the market thins, experts advise spreading out investments to stay secure in both the long and short term. For those in the "retirement danger zone," there's less time for stocks to recover and yield stable results, so relying on stable cash investments or bonds may be a better option.

In summary, the stock market remains down since "Liberation Day," with significant volatility and uncertainty driving market sentiment. The tariffs have had a profound impact on various sectors and companies, leading to market volatility and financial losses. As the economy grapples with the potential long-term effects of the tariffs, investors and consumers alike are left to navigate an uncertain financial landscape.