Stocks post worst week since pandemic on tariff chaos

By the numbers: The S&P 500 and the tech-heavy Nasdaq both fell about 6%, while the small-cap benchmark Russell 2000 dropped around 4%.

• In percentage terms, it was the fifth-largest two-day decline for the S&P 500 in the index's history.
• The Russell closed in a bear market Thursday, down 20% from its recent highs, and the Nasdaq did the same Friday.
• Energy and financial stocks broadly led the decline.
• High-profile "Magnificent 7" names like Apple, Nvidia and Tesla fell as well; most of them are now down more than 20% this year.

Driving the news: China announced a major escalation of the trade war Friday morning, levying a 34% tariff on imports from the U.S. that will take effect on April 10.

• That news accelerated the overnight decline in stocks.
• It got worse when Fed chair Jerome Powell gave a speech warning of higher inflation and slower growth but also indicating the central bank was holding steady on interest rates, dashing any market hopes for relief.

What they're saying: "The tariffs have injected a level of uncertainty and volatility we haven't seen since the early days of the pandemic," Matt Burdett, head of equities at Thornburg Investment Management, said in a note.

• "Markets may actually be underreacting, especially if these rates turn out to be final, given the potential knock-on effects to global consumption and trade."

Go deeper: Why the dollar is doing what it's not supposed to do

Editor's note: This story was updated with closing prices.