US stock markets witnessed a sharp decline as trade tensions escalated due to President Trump’s trade policies and criticism of the Federal Reserve, leading to a mass exodus of investors. The Dow Jones, Nasdaq, and S&P 500 all recorded substantial losses, accompanied by a spike in the VIX, indicating increased market volatility. Investors turned to safe-haven assets, causing gold prices to rise, while the US dollar saw a decline against other major currencies. The situation has raised concerns about the impact of the trade war on the global economy.