This is CNN Breaking News.

And welcome to the lead. I'm Jake Tapper.

We're going to start with breaking news in our money lead with U.S. stock markets plunging,

plunging for the second day in a row.

All a reaction to President Trump's tariff chaos, which is continuing to wreak havoc around the globe.

There's no nice way to say this. Trillions of dollars have just been wiped out.

And for most of you, thousands, if not tens of thousands of dollars,

are now gone from your retirement savings.

The Dow plunging this afternoon by more than 2,000 points,

2,000 points in one day.

The S&P 500 and the NASDAQ both lost nearly 6%. The NASDAQ closed in a bear

market for the first time since 2022, down more than 20% from its record high in December.

The Dow posting its biggest back-to-back losses. It's in March 2020. You know what that was?

That was COVID. As the U.S. market

reels, today China is hitting back, slapping a reciprocal 34% tariff on all imports from the

United States, all imports, starting on April 10th. President Trump lashing out on Truth

Social, writing, China played it wrong. They panicked. The one thing they

cannot afford to do, unquote, this comes with the news that it looks like inflation might be here

to stay at least for a while. Federal Reserve Chair Jerome Powell said today that Trump's tariffs

were, quote, larger than expected and could well raise inflation.

Powell therefore said he is going to keep interest rates steady for the time being.

This announcement comes against Trump's urging, as he posted on Truth Social minutes before Powell's announcement,

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