WARNER ROBINS, Ga. — The stock market plummeted today, with the Dow Jones Industrial Average suffering its largest single-day drop since the pandemic-induced volatility of 2020.
The sell-off was triggered by investor concerns over newly announced tariffs, sparking fears of increased consumer prices and potential economic repercussions.
The Dow closed down 1,500 points, or roughly 4%, marking a significant downturn. The S&P 500 and Nasdaq Composite also experienced steep declines, reflecting broad-based investor anxiety.
The Trump administration defended the tariffs, stating that they are necessary to protect American industries and ensure fair trade practices. The President is hoping for other countries to come to the negotiating table, according to people within the White House.
The U.S. Secretary of Commerce, Howard Lutnick, addressed the tariffs in an interview on Thursday.
“These tariffs are necessary to ensure fair and equitable trade relations. Other countries have taken advantage of the United States for too long, and these actions are a step towards leveling the playing field,” Lutnick said. “It’s just a shot across the bow, so expect the other countries will negotiate with the US.”
“I think right now, a lot of it is a knee-jerk reaction to the tariffs that Trump’s imposing this year,” said James Griggers, a financial planner at Griggers Wealth Management in Warner Robins.
According to Griggers, the tariffs could affect consumer prices.
“The United States is not a big producer of goods,” Griggers said. “The US imports a lot of goods, which is why a lot of companies when their tariffs, all of a sudden start seeing the concerns because all of a sudden everything they’re bringing into the US, the consumer economy that we have is going to end up actually taking all of those costs in.”
Other financial advisors are urging calm. Sherri Goss, a financial advisor at Lifespan Wealth Management, believes it is best for investors to remain cool.
“This is not final,” Goss said. “This is just the beginning and it’s the beginning of negotiations, so don’t react. Don’t sell out. Don’t do anything drastic. Just stay in the news and read what’s true. Do not read opinions.”
While some analysts have warned of a potential recession, Goss maintains a more cautious outlook, advising investors to stay the course.
“Everything that we’re reading right now is telling us to stay in and not stop out,” Goss said. “You don’t want to lock in losses because this could be very temporary, and what one company has told us is they expect the volatility to continue through this whole month.”
Different age groups and life circumstances could dictate different financial moves.
“If you’re somebody who’s maybe coming off the base and retiring in the coming days … this is a much bigger concern,” Griggers said. “Because you don’t want to see your money start dropping right as you’re getting into retirement and you need to start drawing from it because that ends up hitting you twice as hard.”
Griggers recommended government backed securities, US Treasury, and certificates of deposit as safer investments.
“If you’re young and you’re investing, this is the time to be putting money in because you’re getting it, you’re buying it at a discount,” Goss said.
Investors are encouraged to consult a financial advisor to help navigate current market uncertainty.
“I think in the short term we’re going to see some volatility in the markets,” Griggers said. “We’re gonna see some unemployment go up. We’re going to see some inflation go up, and so we’re in for some tough times in the short term.”
Financial planners expect markets to remain volatile in the coming weeks. Investors are urged to consult with financial professionals and make informed decisions based on their individual circumstances.