Wall Street continues to face the fallout of Donald Trump's new trade tariffs, as today's numbers show a sustained shock to the stock market that has not been seen since the Covid-19 outbreak.
President Donald Trump’s self-proclaimed Liberation Day introduced a new set of tariffs that will affect imports from every country in the world. His actions have sparked fears of a trade war with some of America's biggest trade partners. The 'trade shock' has triggered the biggest stock-market plunge since 2020. According to BofA Global, investors pulled another $10.05 billion out of US equity funds in the past week.
Today, the Dow Jones Industrial Average traded 1,130 points, or 2.8%. This follows a 1,679.39 point decline on Thursday. The S&P 500 slid 3.2% after the benchmark shed 4.84% on Thursday. The Nasdaq Composite shed 3.5% as many tech companies have exposure to China. On Thursday, the Nasdaq tumbled 6%.
Today, China’s commerce ministry said that the country will impose a 34% levy on all US products, matching the US tariff on Chinese goods coming into the US.
According to CNBC, companies with large exposure to China led declines with Apple and Qualcomm down 3% each. Tesla lost 3%, and Caterpillar shed 6%. Nvidia fell 3%.
Bank stocks also tumbled in the premarket as worries of a US economic crash continue to grow. Morgan Stanley dropped 6%, while Goldman Sachs shed 5.5%. Citigroup and JPMorgan Chase slid 6.6% and 5.1%, respectively, while Wells Fargo dipped 5%.
Late yesterday evening, JPMorgan raised the odds of a recession this year to 60% from 40%.
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