Trump’s Sweeping Tariffs Trigger Market Plunge: Stocks, Tech, and Oil Hit Hard
Staff Editor Trump’s New Tariffs Spark Market Turmoil
President Donald Trump’s latest move in the ongoing trade war has sent shockwaves through global financial markets. The administration announced new tariffs, including a 10% baseline on all countries, a 34% reciprocal tariff on China, and a 20% tariff on the European Union. The news triggered immediate panic in the stock market, with US indexes dropping sharply.
Stocks Take a Hit
The announcement led to an immediate negative reaction in stock futures, with significant drops in major indexes. The S&P 500 and Nasdaq Composite both fell over 3%, while the Dow Jones Industrial Average plummeted by as much as 1,200 points. Investors expressed concerns over potential earnings growth for multinational companies with global supply chains. Tech giant Apple was particularly affected, with its stock down 8% before the market opening.
Bond Yields Plummet
In response to the market volatility, the 10-year US Treasury yield fell by 13 basis points, reaching its lowest level since October. Investors are increasingly turning to US government bonds as a safe haven. The decline in yields suggests expectations of potential Federal Reserve interest rate cuts to counteract the economic slowdown caused by the new tariffs.
Gold’s Mixed Reaction
Gold prices initially rose following the tariff announcement but later fell by about 2%. Despite this fluctuation, gold remains a popular safe haven asset amidst macroeconomic volatility and geopolitical concerns. The precious metal has been hitting record highs throughout the year.
Oil Prices Tumble
The oil market also felt the impact of the trade war escalation. On Thursday, oil prices experienced a sharp decline, with West Texas Intermediate crude dropping by 7% and Brent crude falling by 6%. Market participants expressed concerns over the potential impact of tariffs on oil demand. Adding to the market’s woes, OPEC+ countries announced plans to increase oil output starting in May, further contributing to supply concerns.
As global markets continue to react to these new tariffs, investors and analysts alike are closely monitoring the situation for potential long-term economic implications.
