Stocks experienced their most significant decline since March 2020 when the global pandemic caused an economic standstill. President Trump's sudden tariff announcements created unrest in the markets, leading to further losses following China's announcement of reciprocal tariffs. The Dow Jones Industrial Average dropped by almost 8% for the week, sliding around 3,300 points and entering correction territory.

Besides, the S&P 500 and Nasdaq Composite witnessed declines of approximately 9% and 10%, respectively, with the Nasdaq entering a bear market. Investors are closely monitoring updates on tariff negotiations and announcements of reciprocal tariffs. Trump's initial 10% tariffs are supposed to take effect on April 5, while additional tariffs are scheduled for April 9.

The upcoming week will focus on big bank earnings and economic data releases, including the Consumer Price Index, producer prices, and consumer sentiment data. Market experts warn that the ongoing tariff tensions may exacerbate selling and heighten the risk of a recession. Analysts also emphasize that investors might be underestimating potential repercussions, particularly regarding the European Union's response to the tariffs.