President Trump announced a The elasticity of new tariffswhen Wall Street started its business, U.S. stock futures fell sharply.
About two hours before trading started at 9:30 a.m. ET, S&P 500 futures fell 190 points, or 3.3%, while futures for the Dow Jones industrial average and technology-heavy Nasdaq Composite fell 3% and 4%, respectively.
Overseas markets also fell due to overnight trading. In Asia, Tokyo’s Nikkei 225 index briefly fell 4%, automakers and banks took a huge blow before closing 2.8%, while South Korea’s benchmark Kospi fell 1.1%. In Europe, Germany’s DAX fell 1.7%, France lost 1.8% in Paris’ CAC 40, while the UK’s FTSE 100 fell 1.2%.
Gold prices briefly hit a record $3,167 before immersion as investors digested the impact of the White House’s escalating trade war.
“Stocks are gliding across all markets as the world reacts to Trump’s trade war,” Adam Crisafulli, a major analyst, told investors in a research note.
Mr Trump said the U.S. will impose a 10% benchmark tariff on all U.S. trading partners starting April 5. Four days later, the United States will also prepare Apply for reciprocity tariffs In about 60 countries.
While investors hope to adopt more restrictive trade policies from the White House, U.S. markets flowed on Wednesday, but now the reality is fearing that the economy may stagnate and may fall into recession.
“The Trump administration has adopted a shock method to tariffs, imposing very high tariffs on all its major trading partners,” analysts at Societe Generale said in a note Thursday.
They added: “These tariffs are undoubtedly worse than some of the worst scenarios previously envisioned at the overall economic level and economic level.
Contributed to this report.
