Financial markets worldwide experienced a severe downturn on Friday as investors reacted to President Donald Trump’s sweeping new tariff policy affecting over 180 countries, combined with OPEC+’s surprise production increase.

The Dow Jones Industrial Average plummeted nearly 1,700 points (4%), marking its fifth-largest point drop in history. The tech-heavy Nasdaq fell 6%, while the S&P 500 lost almost 5%. Technology giants bore the brunt of the selloff, with Apple shares dropping over 9% amid concerns about its China-dependent supply chain. Collectively, the “Magnificent Seven” tech companies shed more than $900 billion in market value.

The Russell 2000 index of smaller companies declined 6.4%, while international markets also suffered, with Europe’s Stoxx 600 falling 2.5% and Japan’s Nikkei 225 dropping 2.7% to its lowest level since August 2024.

Bond markets reflected a flight to safety, with the 10-year Treasury yield falling to 4.05%, while the dollar index dropped 1.5% to a five-month low of 101.92.

Oil markets weren’t spared, with WTI crude approaching $66 per barrel after OPEC+ members unexpectedly agreed to increase production by 411,000 barrels per day next month, far exceeding the anticipated 140,000-barrel increment.

The market turmoil follows Trump’s announcement of a two-phase tariff plan that includes a 10% blanket tariff on all trading partners and higher rates for designated “bad actors,” with China facing an effective rate of 54%. The policy raises the average U.S. tariff rate to its highest level in over a century.