On April 8, 2025, the S&P 500, a one of the biggest U.S. stock market indexes, took a wild ride and ended the day at 4,982.77. This was after the biggest single-day swing ever recorded for the index.
The drop came from growing tensions about the new President Donald Trump’s tariff policies-taxes on goods coming into the country. For the first time since April 4, 2024, the S&P 500 fell below the key 5,000 mark. This capped off a rough four-day stretch where the market lost 12.1% of its value,
wiping out not billions but trillions of dollars. It was the worst slump since October 2008.
A Wild Day for the S&P 500:
The trading day began with some optimism. The S&P 500, which had closed at 5,062.25 the day before, climbed over 4% early on, hitting 5,267.47. Investors were hopeful that Trump might soften his tariff plans. But that hope vanished when the White House confirmed the tariffs would go ahead. Stocks started falling fast. By the close, the index landed at 4,982.77, down from a high of 5,267.47 and a low of 4,910.42 that day. Over 23 billion shares were traded, a sign of how panicked the market felt.
This wasn’t just one bad day. It was the end of a four-day slide that began on April 2, when the S&P 500 was at 5,670.97. Here’s how it fell:
- April 2, 2025: 5,670.97
- April 3, 2025: 5,396.52
- April 4, 2025: 5,074.08
- April 7, 2025: 5,062.25
- April 8, 2025: 4,982.77
By the end, the index had dropped 12.1%-a huge loss not seen since the 2008 financial crisis.
Trillions Wiped Out: The Cost of the Crash
The financial damage was massive. Over those four days, the U.S. stock market lost more than $5.83 trillion in value. The S&P 500 tracks 500 big companies, and its fall below 5,000-a level last seen a year earlier-rattled Wall Street. Other indexes, like the Dow and Nasdaq, also erased all their gains from the past year. From tech firms to factory giants, every part of the market felt the hit. This wasn’t just about numbers-it signalled bigger worries about how policies could shake up the economy.
Trump’s Tariffs: The Spark Behind the Drop
So, what caused this mess? It all points to President Trump’s tough tariff policies. By putting high taxes on goods from key trading countries, the U.S. raised fears of a global trade war. Early on April 8, investors thought there might be a last-minute change, boosting the market briefly. But when the
White House stuck to its tariff plan-confirmed by Reuters before a midnight deadline-the mood flipped. Investors rushed to sell, driving the S&P 500 down hard.
The real problem isn’t just the tariffs themselves. It is the uncertainty it brings in. Would other countries fight back? Could supply chains break down? Would companies make less money? These questions fuelled the panic and the sell-off.
Echoes of 2008: A Familiar Collapse
This 12.1% drop over four days felt a lot like October 2008, when a banking crisis sent markets crashing worldwide. Back then, the trouble came from failing banks. In 2025, it was about trade
policies. The S&P 500’s huge swing on April 8 showed how fragile the market can be, proving that big disruptions aren’t a thing of the past.
