Hold onto your avocado toast, folks! The U.S. stock market just took a nasty spill, and it’s all thanks to good old President Trump and his tariff drama. On Friday, the Dow Jones Industrial Average tumbled nearly 750 points, while the S&P 500 experienced its worst day in two months, dropping 1.7%. Meanwhile, the tech-heavy Nasdaq wasn’t spared either, diving 2.2%. Can we get a collective yikes?

So, what’s got Wall Street in a tizzy? Apparently, businesses and consumers are fretting over the impact of federal policies, which includes everything from spending cuts to those pesky tariffs. Chris Williamson, the chief business economist at S&P Global Market Intelligence, didn’t mince words: sales are taking a hit due to the uncertainty swirling in the political playground. Who knew that governing could come with such unappetizing side effects?

But wait, there’s more! A fresh report reveals that U.S. business activity is nearing a standstill, with activity in the services sector unexpectedly shrinking. Things aren’t looking great for our economy when service folks are reporting a serious case of the blues. Price hikes due to tariffs are driving up costs, leaving consumers bracing for inflation that’s expected to reach 4.3% by this time next year. Remember when we thought 3.3% was a bummer? Hold onto your wallets!

As if that wasn’t enough, the housing market is feeling the pinch too. Sales of previously occupied homes have taken a nosedive, thanks to sky-high mortgage rates and sticker shock on home prices. The struggle is real, my friends.

Now, before we dive headfirst into panic mode, let’s remember that despite the Friday chaos, the stock market has been hanging around near its all-time high this year. But the specter of recession is hanging around at the back of the class, just waiting to cause trouble if this trend continues.

Small-cap stocks, more closely tied to the domestic economy, got hit hard, with the Russell 2000 index dropping by a whopping 2.9%. On the flip side, companies that offer stability, like the water utility American Water Works, made small gains in this wild stock jungle. And while stocks like NVIDIA sank 4.1%, energy drink company Celsius Holdings soared, reveling in sweet gains after announcing a buyout.

So, as Wall Street breathes a collective sigh of despair, the burning question remains: Are we on the edge of a financial cliff, or will cooler heads prevail? Only time will tell, but if this keeps up, it’s time to stockpile library books and figure out how to grow your own food!