The stock market sold off following President Trump’s announcement of a sweeping 10% baseline tariff on U.S. trading partners, according to CNBC. Investors were caught off guard by the scale of the policy, triggering fears of higher inflation, reduced consumer spending, and slower economic growth. Wells Fargo and J.P. Morgan economists warned of a potential U.S. recession and long-term inflationary pressures. Analysts said the sell-off was driven not only by tariff policy but also by elevated stock valuations that made the market more sensitive to negative news.
