Stocks just had their worst week since a global pandemic brought the world economy to a halt in March 2020.

In a staggering reversal, U.S. stock markets have suffered their most significant weekly decline since the onset of the COVID-19 pandemic, primarily driven by President Trump's unexpected tariff announcements which unsettled investors and triggered reciprocal actions from China. The Dow Jones Industrial Average plummeted nearly 8%, reflecting a loss of approximately 3,300 points, while the S&P 500 fell by about 9%, nearing a 20% drop from its peak. The Nasdaq Composite, predominantly tech-heavy, faced the steepest decline at a staggering 10%, officially marking it as a bear market with a 20% decrease from its recent highs. As investors brace for upcoming tariff negotiations and anticipate reports from major banks, the focus sharpens on whether this downturn signals the end of a more profound sell-off. Prominent analysts like Mike Wilson from Morgan Stanley caution that prolonged high tariffs could heighten the recession risk, while Joe Brusuelas from RSM highlights that the European Union has yet to respond to the U.S. tariffs, indicating new areas of vulnerability. Further complicating the economic landscape, Fed Chair Jerome Powell acknowledged that tariffs are likely to inflate prices, introducing lingering uncertainty regarding monetary policy. The looming Consumer Price Index release is expected to show a modest decline in inflation, yet commentators speculate the new tariffs' impacts will overshadow such data. Additionally, the IPO market, which had previously shown signs of revival with notable spikes in companies like Newsmax and CoreWeave, seems to have reversed course as various companies delay their public offerings amidst this turbulent atmosphere. The upcoming earnings season invites scrutiny, as the market grapples with the implications of Trump's tariffs on corporate profitability. Analysts predict a shift in earnings estimates—already trimmed by 4.2% for the first quarter—depending on how well companies adapt to the new economic reality. Investors are expected to pay close attention to companies' forward guidance, as the uncertainty regarding tariff impacts dominates the landscape for the rest of 2025.