Stocks Plunge on New York Stock Exchange After Trump Announcement – Latest Update
The US stock market experienced a significant decline as the Dow Jones index lost close to 1700 points, decreasing by 3.98 percent to 40,545.93 points. Similarly, the S&P 500 index fell by 4.84 percent to 5,396.52 points, while the NASDAQ index saw a 5.97 percent drop to 16,550.61 points.
This massive sell-off was triggered by the mutual tariffs announced by US President Trump, causing a wave of panic in the markets. Analysts noted that the actual tariffs were higher than what was expected, leading to concerns about a potential trade war and its impact on the global economy.
As a result of these tariff announcements, the 10-year Treasury bond interest rate dropped to 4.03 percent, and the dollar index fell to 102.07 with a 1.7 percent loss. The fears of a recession caused the US markets to lose around $3 trillion in market value, with the stocks of major companies taking a significant hit.
In response to the market turmoil, Trump defended the tariffs, stating that they were necessary and that the markets would eventually stabilize. US Trade Minister Howard Lutnick reinforced this stance, stating that there would be no exemptions for tariffs and that other countries needed to address their trade barriers.
The impact of the tariffs was felt across various industries, with companies like Apple and Nike experiencing significant drops in their stock prices. Retailers heavily reliant on imported goods, such as Five Below and Dollar Tree, also saw a decline in their shares.
Federal Reserve officials also weighed in on the situation, with FED Vice President Philip Jefferson suggesting that they could maintain their current tight policy for a longer period. Lisa Cook, another FED Board Member, highlighted the uncertainty surrounding tariffs and its potential to weaken the economy.
Overall, the tariffs announced by President Trump have sent shockwaves through the stock market, raising fears of a trade war and its consequences on the global economy. Investors and analysts will be closely monitoring the situation for any developments that could impact their investments.
