U.S. Stocks Lose $11 Trillion Since February as Recession Fears Mount Over Trump Tariffs

U.S. stock markets have experienced a staggering $11 trillion wipeout since February 19, with losses accelerating on April 4 following heightened concerns over President Donald Trump’s sweeping tariff measures.

The single-day market loss amounted to $3.25 trillion—exceeding the total valuation of the global cryptocurrency market, which stood at $2.68 trillion at the time.

Among major tech players, dubbed the “Magnificent 7,” Tesla led the plunge, falling 10.42%. Nvidia and Apple also saw steep losses, dropping 7.36% and 7.29% respectively, according to TradingView data.

Nasdaq 100 Falls 6%, Slips Into Bear Market Amid Broad Sell-Off

The widespread sell-off sent the Nasdaq 100 tumbling 6% on the day, pushing the index officially into bear market territory.

The Kobeissi Letter, a financial insights platform, described April 4 as the worst day for U.S. equities since March 2020.

“U.S. stocks have now erased a massive $11 trillion since February 19,” Kobeissi said in an April 4 post on X, adding that the odds of a recession now exceed 60%.

The platform called Trump’s April 2 tariff policy announcement “historic” and warned that if such measures persist, a recession may become unavoidable.

President Trump's reciprocal tariffs on Wednesday were historic.

The effective US tariff rate is now above 25% for the first time since ~1900.

We are ABOVE levels seen in the Smoot-Hawley Tariff Act of the 1930s.

If these tariffs persist, a recession is impossible to avoid. pic.twitter.com/eqr0Qik5ZH

— The Kobeissi Letter (@KobeissiLetter) April 4, 2025

The executive order signed by Trump imposes a 10% baseline tariff on all imported goods and introduces reciprocal tariffs aimed at leveling trade imbalances.

Trump said the move targets the disproportionate tariffs imposed on U.S. exports by other countries.

While traditional markets slump, Bitcoin has shown notable resilience. At the time of publication, BTC was trading around $83,749, down just 0.16% over the past week, according to CoinMarketCap.

Some traders have pointed to Bitcoin’s stability as a potential hedge against macroeconomic volatility.

“Bitcoin doesn’t appear to care one bit about tariff wars and markets tanking,” said technical analyst Urkel. Even longtime crypto skeptics are beginning to take notice.

“I’ve hated on Bitcoin in the past,” admitted stock market commentator Dividend Hero, “but seeing it hold steady while stocks collapse is very interesting to me.”

Everyone is talking about $BTC strength in the face of a 2-day, 10%+ stock sell-off, even as gold falls

But this has nothing to do with stocks

Bitcoin is NOT, & never has been, a market hedge. It is a gov't/bank hedge. This selloff is due to a loss of trust in global gov't. pic.twitter.com/hi9g4vIseh

— Jeff Dorman (@jdorman81) April 5, 2025

Trump Administration is Manipulating Stock Markets to Cut Rates: Anthony Pompliano

Last month, Bitcoin commentator Anthony Pompliano said that the Trump administration may be deliberately engineering market turmoil to pressure Federal Reserve Chair Jerome Powell into lowering interest rates.

He hypothesised that President Donald Trump and Treasury Secretary Scott Bessent are attempting to crash asset prices, forcing the Fed’s hand to reduce rates.

Pompliano, the founder and CEO of Professional Capital Management and host of The Pomp Podcast, claims that lowering interest rates is crucial to avoid the need to refinance $7 trillion in upcoming U.S. debt obligations.

“Trump and his team are intentionally crashing the market,” he wrote. “Is this a master plan or are we watching uncontrolled destruction?”

The theory comes as Powell recently refused to cut rates despite Trump’s repeated calls for lower borrowing costs.

In January, the Fed held rates steady at 4.25% to 4.5%, maintaining its cautious stance amid inflation concerns.