Stocks continued to sag Friday in the U.S. after financial markets suffered their biggest one-day drop since 2020.

The Dow fell 5.1%, or about 2,100 points, by early afternoon, extending its two-day loss to about 3,700 points, while the S&P and Nasdaq fell about 5.5% apiece Friday, sending the S&P’s decline since Trump’s Wednesday tariff announcement to 10% and the Nasdaq’s to 11%.

US equity futures are pointing towards more pain ahead on Wall Street after Thursday's rout wiped out over $2.5 trillion in market capitalisation. The Dow futures are currently trading 420 points lower,

Overseas markets also slid Friday. In overnight trading in Asia, Tokyo's Nikkei 225 lost 2.8%, while South Korea's Kospi sank 0.9%. Markets in Shanghai, Taiwan, Hong Kong and Indonesia were closed for holidays, limiting the scope of Friday's sell-offs in Asia.

Thursday's sell-off hit megacap technology stocks especially hard, with CNBC's Magnificent Seven index sliding more than 6%. Collectively, the stocks in the Magnificent Seven, which led the market higher in both 2023 and 2024, lost more than $1 trillion in market value.

China slapped a 34% tariff on U.S. goods starting April 10 in retaliation to Trump's tariff plans. Global markets tumble as the trade war begins. Follow along for live updates on how the Dow, S&P 500 and Nasdaq are reacting.

The Dow Jones Industrial Average and other major indexes moved higher in midday trading Wednesday, as stocks recovered from a weak opening earlier in the session. President Donald Trump was set to announce more tariffs as part of what he called "Liberation Day.