To say that the stock market is having a negative reaction to President Donald Trump’s reciprocal tariffs would be a major understatement. As of 10:30 a.m. ET on Thursday, the Dow Jones Industrial Average was down by about 1,500 points, a decline of 3.5%. The S&P 500 and Nasdaq Composite were faring even worse, down by 4% and 5.1%, respectively.
The small-cap Russell 2000 index is taking the worst hit of the headline indexes. It’s down by nearly 6% for the day as I write this, and is now 21% off its high, putting it into bear market territory.
Given the market’s reaction, it’s important to take a step back and digest what the tariffs mean for investors and what could happen next. Here’s a quick rundown of the news and what investors should be focusing on.
This post originally appeared at The Motley Fool.