Global stocks extended a severe plunge on Monday amid concerns that U.S. tariffs would lead to a global economic slowdown. Stocks in Europe and Asia have caused huge losses, with leading U.S. indexes flirting with bear territory in bear trading, and oil prices have fallen.
President Donald Trump announced a sharp increase in U.S. import taxes and retaliation, a massive amount of sold out of this huge risk asset, amid U.S. import taxes and retaliation that announced a sharp decline in the market on Thursday and Friday.
Later on Sunday, Trump reiterated his determination, saying: “Sometimes you have to take medication to solve some problems.”
Despite the ongoing global market chaos, U.S. President Donald Trump once again defended his tariffs. On Air Force One, Trump snapped up with a reporter and said, “Your problem is so stupid. I don’t want anything to fall down, but sometimes you have to take medication to solve some problems.
Futures in the United States show further weakness. For the S&P 500, they lost 3.4%, while the Dow Jones industrial average lost 3.1%. Nasdaq lost 5.3%.
Some of these countries, including South Korea and Pakistan, said they will soon send trade officials to Washington for clarity.
However, German Economy Minister Robert Habeck expressed resistance when he attended the EU Trade Minister’s meeting in Luxembourg, saying the premise of widespread tariffs was “nonsense” and that the attempts of countries to win exemptions had not worked in the past.
He said it is important for the EU to unite. “It means clear that we are in a strong position – the United States is in a weak position.”
Trump has made the tariff defense a solution to the U.S. trade deficit – which most economists believe is not a sign of economic health in itself. As far as Canada and Mexico are concerned, he is trying to use tariffs to try to curb the flow of fentanyl into the United States, even if the drug fixation of Canada entering the United States is relatively low.
JPMorgan Chase CEO Jamie Dimon, in his annual notes to shareholders earlier Monday, warned investors that unrest caused by U.S. tariffs and the global trade war could slow growth in the world’s largest economy, which stimulates inflation and could lead to lasting negative consequences.
“The faster this problem is solved, because some of the negative effects will accumulate and increase over time and are difficult to reverse,” the CEO wrote.
JPMorgan Chase economists have increased the risk of this year’s U.S. and global recession by 60% from 40% as Trump uncovered the steepest trade barriers in more than 100 years last week.
Dimon said in January that the tariffs criticizing Trump need to be “surmounted”, although he did allow them to implement them carefully.
Flirt with the Bear Zone
If losses in former market futures will be realized when the U.S. market is open, the S&P 500 will enter bear territory, defined as being more than 20% away from the peak. As of last weekend, the index’s revenue was 17.4%.
The U.S. Federal Reserve can reduce the impact of tariffs on the U.S. economy by lowering interest rates. This can encourage corporate and households to borrow and spend. But Fed Chairman Jerome Powell said Friday that higher tariffs could raise expectations of inflation, while lower interest rates could increase price gains.
Front burner24:56Trump’s global market collapses, explains
U.S. President Trump’s latest and worst tariffs have caused bloody global markets and widespread economic anxiety. JPMorgan Chase’s chief economist increased the chances of a global recession to the end of the year, above 40% and above 40%. People are looking for jobs to be phased out in auto factories and elsewhere in manufacturing. Reporter Joe Weisenthal is co-host of Bloomberg’s weird podcast. Here he explains the collapse of the global market and what we expect in the coming days. For a transcript of the front burner, visit: []
On Friday, the worst market crisis turned into higher gears since the 19-year-old pandemic, as the S&P 500 fell 6% and the Dow fell 5.5%. Nasdaq Composite fell 3.8%.
“There is no sign that the market is finding the bottom and starting to stabilize,” Deutsche Bank analysts wrote in a research note.
The Chinese markets usually don’t follow global trends, but they also fall. Hong Kong’s Hunton fell 13.2%, while Shanghai’s comprehensive index lost 7.3%. In Taiwan, Taiex plummeted 9.7%, while South Korea’s Kospi lost 5.6%.
Beijing caught the attention of confidence even when markets in Hong Kong and Shanghai fell on Monday. On People’s Day, the Communist Party’s official cigarette holder has strong words.
“The sky won’t fall,” it declared, adding: “Faced with the indistinguishable fist of American taxes, we know what we are doing and we can use tools.”
Oil prices plummet
Middle Eastern stock markets stumbled on Monday as they struggled with the double blow of new U.S. tariffs and oil prices plummeted.
During the last five days of the deal, the benchmark Brent crude fell by nearly 15%, and a barrel of oil costs just over $63. It’s down nearly 30% from a year ago.
The cost per barrel is much lower than the breakeven price of Saudi Arabia and most other countries that produce energy in the Middle East. This is combined with new tariffs, with tariffs in the Gulf Cooperation Commission states Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates reaching 10%.
“Through these measures and the expected retaliation measures other countries can take, the stability and predictability of international trade may be undermined,” the accounting firm PWC said in an consultation with clients in the Middle East.
Tokyo’s Nikkei 225 index fell 7.8%. European stocks followed the Asian market, led by Germany’s DAX index, which briefly fell more than 10% in the Frankfurt Exchange Open, but recovered some base in morning trading, down 5.8%.
