The Dow Jones Industrial Average is on track for its worst April performance since 1932, during the Great Depression era. The index has shed nearly 1,000 points amid growing concerns over President Donald Trump’s trade policies and their impact on the global economy. Trump’s announcement of his “reciprocal tariff” policy earlier this month has contributed to significant market instability.
The S&P 500 has also seen its worst performance since Inauguration Day for any president going back to 1928, according to Bespoke Investment Group. On Monday, the yield on a 10-year Treasury note rose to 4.89 percent, while the ICE U.S. dollar index sank more than 1 percent to its lowest level since March 2022.
Worst April for Dow Jones
This unusual combination of market indicators suggests that the costs of imported goods will be even higher than the boosted prices caused by Trump’s tariffs on nearly every country in the world. The International Monetary Fund warned on Tuesday that Trump’s tariffs would slow growth not only for the U.S. but globally. The IMF’s chief economist, Pierre-Olivier Gourinchas, told reporters that the odds of a recession in the U.S. had increased from 25 percent in October 2024 to 40 percent.
The market seemed to slightly recover on Tuesday from the significant sell-off during the previous session. However, the long-term impact of Trump’s trade policies remains a major concern for investors and economists alike. As the U.S. economy faces challenges reminiscent of the Great Depression era, the effectiveness of Trump’s tariffs and their potential to further destabilize global markets will continue to be closely monitored.
