Earnings Mastery
  • Politics
  • Business
  • Investing
  • World
No Result
View All Result
  • Politics
  • Business
  • Investing
  • World
No Result
View All Result
Earnings Mastery
No Result
View All Result
Home Investing

Red alert: Donald Trump’s trade war sends stocks tumbling worldwide

April 4, 2025
in Investing
Red alert: Donald Trump’s trade war sends stocks tumbling worldwide
0
SHARES
5
VIEWS
Share on FacebookShare on Twitter

US President Donald Trump’s long-awaited unveiling of his trade plans, dubbed “Liberation Day,” has sent shockwaves through global markets, but what exactly is being liberated remains a subject of intense debate. Is it the US economy from global competition?

The US dollar from its position as the world’s reserve currency? Or perhaps, cordial relations with key trading partners?

While the full impact remains to be seen – with the 25% auto tariffs yet to kick in and the universal 10% tariffs scheduled to take effect April 5, followed by “reciprocal” tariffs on April 9 – the initial market reaction has been resoundingly negative.

Despite Trump’s optimistic pronouncements that “The markets are going to boom. The stock is going to boom. The country is going to boom,” the immediate aftermath was anything but celebratory for investors, who found themselves on the wrong side of a massive sell-off.

Panic on Wall Street: a flight to safety

After Thursday’s trading session, investors, far from feeling liberated, fled to the relative safety of bonds, seeking shelter from the storm unleashed by Trump’s policies.

The markets responded in brutal fashion.

  • Stock market bloodbath: The S&P 500 plummeted 4.84%, and the Dow Jones Industrial Average slumped 3.98%, marking their largest declines since June 2020. The Nasdaq Composite plunged 5.97% for its worst session since March 2020.
  • Small caps in bear territory: The Russell 2000 Index of small-cap stocks declined 6.59%, pushing it into bear market territory, defined as a 20% or more decline from a 52-week high.
  • Bond market rally: The benchmark 10-year Treasury yield fell as low as 4% as investors piled into bonds, driving prices up.

The Magnificent Seven suffer a trillion-dollar wipeout

The tech giants known as the “Magnificent Seven” bore the brunt of the sell-off, collectively losing approximately $1.03 trillion in market capitalization, according to a CNBC analysis.

Apple shares were hit particularly hard, falling over 9% – their steepest decline in five years.

The fact that Apple’s supplier list is largely made up of countries disproportionately affected by Trump tariffs offers a compelling possible explanation.

Stagflation looming? Experts warn of economic peril

The market turmoil has stoked fears of stagflation, a toxic combination of slowing economic growth and rising prices.

Lindsay Rosner, Goldman Sachs’ head of multi-asset fixed income, warned CNBC that Trump’s tariff plan could slow growth and push up prices. JPMorgan economists go even further, predicting that Trump’s trade policies “would likely push the US and global economy into recession this year.”

This would place the Federal Reserve in a difficult position, forcing it to choose between combating inflation, stimulating growth, or standing aside and allowing events to unfold without intervention.

Global fallout: European markets slammed

The repercussions of Trump’s tariffs extended beyond US borders, with European stocks also taking a heavy hit.

The pan-European Stoxx 600 tumbled 2.57%, with major retail brands among the worst performers.

Shipping giant Maersk, often seen as a bellwether for global trade, plummeted 9.5%. In response, acting German Economy Minister Robert Habeck suggested that Trump would “buckle under pressure” and alter his tariff policies if Europe presented a united front.

As investors grapple with the fallout from the tariff news, the upcoming jobs report looms large. As one market strategist warned, a weak jobs report could be “a nail in the coffin for the US economy.”

While the European Union has been slammed with 20% duties, the UK was hit with a lower 10%, benefiting from its more balanced US trade relationship.

Most analysts agree that, from an economic perspective, there are few – if any – winners from the expected slowdown in growth and the fracturing of trade ties.

The post Red alert: Donald Trump’s trade war sends stocks tumbling worldwide appeared first on Invezz

Previous Post

Dressed for disaster? The harsh impact of Trump’s tariffs on the fashion industry

Next Post

Top 3 reasons S&P 500 index ETFs like SPY and VOO will rebound

Next Post
Top 3 reasons S&P 500 index ETFs like SPY and VOO will rebound

Top 3 reasons S&P 500 index ETFs like SPY and VOO will rebound

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    Asian markets open: Nikkei down; Bank of Korea holds rates; Sensex opens flat

    July 10, 2025
    OpenAI to launch AI-powered browser, targeting Chrome’s dominance: report

    OpenAI to launch AI-powered browser, targeting Chrome’s dominance: report

    July 10, 2025
    Trade tariffs force Nissan to suspend production of key models for Canada

    Trade tariffs force Nissan to suspend production of key models for Canada

    July 10, 2025
    TSMC posts 39% jump in June quarter revenue, beats estimates on AI demand

    TSMC posts 39% jump in June quarter revenue, beats estimates on AI demand

    July 10, 2025
    Core Scientific deal reveals cracks in CoreWeave’s bull case

    Core Scientific deal reveals cracks in CoreWeave’s bull case

    July 10, 2025
    European stocks soar higher on hopes of trade deal: FTSE up 0.8%, DAX jumps 0.4%

    European stocks soar higher on hopes of trade deal: FTSE up 0.8%, DAX jumps 0.4%

    July 10, 2025

    Disclaimer: EarningsMastery.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Popular

    Microsoft to cut 9,000 jobs, as company wide layoffs increase

    July 3, 2025

    Latest

    Asian markets open: Nikkei down; Bank of Korea holds rates; Sensex opens flat

    July 10, 2025
    OpenAI to launch AI-powered browser, targeting Chrome’s dominance: report

    OpenAI to launch AI-powered browser, targeting Chrome’s dominance: report

    July 10, 2025
    Trade tariffs force Nissan to suspend production of key models for Canada

    Trade tariffs force Nissan to suspend production of key models for Canada

    July 10, 2025
    • About us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 earningsmastery.com | All Rights Reserved

    No Result
    View All Result
    • Politics
    • Business
    • Investing
    • World

    Copyright © 2025 earningsmastery.com | All Rights Reserved