A significant drop of 10% in the Dow Jones Industrial Average was observed since its peak in December. This decline has put it at risk of officially entering a correction phase as China retaliated with new tariffs following the announcement of trade levies by the Trump administration. Global stock markets saw a continued decline due to China's decision to apply additional tariffs on U.S. goods, raising concerns about a potential trade war leading to inflation, reduced demand, and a global economic downturn.

President Donald Trump initiated a 10% tariff on most U.S. imports earlier that week, with particularly high levies on countries like China. The Dow Jones Industrial Average has slipped by more than 10% from its record high in December, standing at 39,548.12 points compared to the peak of 45,014.04.

If the Dow closes at a level 10% or more below this point, it would officially confirm a correction as per industry standards, making it the last of the major Wall Street indexes to do so. Both the S&P 500 and the Nasdaq had already confirmed their correction status in March.

As of 09:30 a.m. ET, the Dow Jones Industrial Average was down by 971.56 points, or 2.40%, at 39,574.37, the S&P 500 had dropped 130.30 points, or 2.44%, to 5,266.22, and the Nasdaq Composite had seen a decline of 488.85 points, or 2.95%, down to 16,061.76.