Roughly $2.5 trillion in market capitalization was wiped from the S&P 500 on Thursday after President Donald Trump announced a new round of tariffs, triggering widespread selling across U.S. equities and raising concerns about a potential recession.

The S&P 500 declined 4.8%, its steepest one-day drop since June 2020. More than 80% of companies in the index fell, and over two-thirds lost at least 2%. The losses were concentrated among firms with global supply chains, especially those dependent on overseas manufacturing.

Apple Inc. (AAPL, Financials) declined 9.3%. Target Corp. (TGT, Financials) and Dollar Tree Inc. (DLTR, Financials) each fell more than 10%. Lululemon Athletica Inc. (LULU, Financials) and Nike Inc. (NKE, Financials) dropped more than 9%.

Semiconductor companies were also hit hard. The Philadelphia Semiconductor Index dropped 9.9%. Micron Technology Inc. (MU, Financials) declined 16%, while Broadcom Inc. (AVGO, Financials) fell 11%. Nvidia Corp. (NVDA, Financials) lost 5.2%.

Industrial firms with exposure to international markets were not spared. Caterpillar Inc. (CAT, Financials) fell more than 6%, and Boeing Co. (BA, Financials) declined over 8%.

The tariffs add to the cost of imported goods, creating potential pressure on profit margins for firms reliant on manufacturing in China and Southeast Asia. Apple, for example, produces most of its iPhones in China.

According to JPMorgan Chase & Co., the new tariff package amounts to the largest tax increase since 1968. The firm estimated that the policy could push prices higher by 1.5% this year, using the Federal Reserve's preferred inflation measure, and weigh on consumer spending and personal income.

Major technology companies experienced some of the sharpest declines in market value. Apple lost about $300 billion in market capitalization. Other large-cap tech firms, including Microsoft Corp. (MSFT, Financials), Tesla Inc. (TSLA, Financials), Meta Platforms Inc. (META, Financials), Alphabet Inc. (GOOGL, Financials), Amazon.com Inc. (AMZN, Financials), and Nvidia, also declined significantly.

Outside the United States, the market reaction was more subdued. A broad index of Asian equities fell less than 1%, while the Stoxx Europe 600 declined 2.6%. The euro rose 1.6% against the U.S. dollar, which weakened following the announcement.