The Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100 index, plummeted 5% in Friday's pre-market trading session, extending losses from Thursday's bloodbath. This sharp decline comes as the broader U.S. stock market reels from the introduction of President Donald Trump's new tariffs, sparking fears of a potential trade war and its impact on economic growth.

The selloff was triggered by President Trump's announcement of sweeping tariffs, which led to a market-wide downturn on Thursday. The Dow Jones Industrial Average suffered its fifth-largest drop ever, plummeting by 1,679 points, while the S&P 500 and Nasdaq experienced their most significant single-day losses since the early days of the COVID-19 pandemic in 2020. Despite the market's negative reaction, Trump dismissed concerns, stating, "The market is going to boom, the stock is going to boom, the country is going to boom."

Analysts and market experts have expressed concerns about the potential economic impact of these tariffs. Jim Cramer, CNBC's prominent financial commentator, compared the situation to the Smoot-Hawley Tariff Act of 1930, which exacerbated the Great Depression. Meanwhile, the CBOE Volatility Index (VIX) surged to its highest level since August 2024, reflecting increased market fear and uncertainty. However, some experts, like Charlie Bilello of Creative Planning, suggest that such volatility spikes historically present opportunities for long-term investors, noting that "More Fear = More Opportunity."