'Donald Trump isn’t done yet': Top investor warns as $5 trillion vanishes from markets

Markets plunged, fear surged, and a global reckoning took shape, all within one brutal week. As Wall Street reeled from its steepest losses since 2020, investor Basant Maheshwari captured the mood with a post on X: “America’s Liberation Day turned out to be Judgement Day — where everyone attending is supposed to die first.”

“Trump isn’t done yet,” he added — a stark reminder of the historic wealth destruction unfolding under the weight of escalating trade wars.

In less than 48 hours, U.S. President Donald Trump raised tariffs to the highest level in over a century. China responded with a 34% duty on all American imports, escalating the global trade war and shaking investor confidence.

Wall Street’s reaction was immediate and unforgiving. The S&P 500 fell 6% in two days, wiping out $5 trillion in market value. The Nasdaq plunged more than 20% from its December peak, entering bear market territory. Since Trump took office, nearly $9 trillion in U.S. equity value has been erased.

Other markets weren’t spared. Chip stocks sank 7%, oil fell 10%, and Brent crude hit a four-year low near $62 a barrel. The Philadelphia Semiconductor Index is now down 40% from its high. The 'Magnificent Seven' ETF dropped 10% for its worst-ever week.

Despite growing calls for intervention, Federal Reserve Chair Jerome Powell maintained a cautious tone, citing “elevated risks” but no immediate action. Markets are now fully pricing in four interest rate cuts this year, beginning in June. Some traders expect the Fed could act even sooner if turmoil persists.

J.P. Morgan called it the “biggest U.S. tax rise since 1968” and warned that a global recession is more likely than not. Barclays expects U.S. GDP to contract in Q4, while inflation breaches 4%. Citi projects a 1 percentage point GDP hit for both the Eurozone and China.

The VIX — Wall Street’s fear index — spiked to its highest level in five years. In Europe, even Swiss bonds briefly dipped into negative yields — a rare indicator of deep market anxiety.

Global policymakers are expected to remain in constant contact over the weekend. Monday could bring more pain — or a desperate attempt to calm what’s quickly becoming a full-blown financial crisis.