US equities have experienced a significant drop as trade war tensions escalate, triggered by President Trump's announcement of global tariffs averaging 10% on all imports, with increases up to 50% on certain countries. The Dow Jones Industrial Average lost over 1,600 points on the first trading day following the announcement, and the S&P 500 fell nearly 5%, marking ongoing declines in US stock markets. Fed Chair Jerome Powell indicated there would be no interest rate cuts in the near future, further contributing to market volatility. Notably, IPOs and M&A activities have paused as companies react to the economic landscape created by these tariffs, and concerns rise over reciprocal tariffs from countries like China. The uncertainty created by these trade dynamics leaves investors wary and suggests potential further market declines.

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