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US stock markets plummet as Trump's tariffs trigger global crash
The US stock market fell into bear territory after global markets faced a downturn following tariffs announced by Donald Trump
As global stock markets plummeted, Wall Street took a tumble as well on Monday in the aftermath of US President Donald Trump announcing reciprocal tariffs. The Dow Jones Industrial Average was down 1,200 points, and the Nasdaq composite was 4 per cent lower, reported Associated Press.
Amid a complete downturn in the stock market today, the S and P 500 was down 3.8 per cent in early trading, with the last week marking its worst performance since the onset of COVID in March 2020.
US stock markets have been heading towards bear territory, since April 2. In the two days after Trump's tariff announcement, more than $5 trillion were wiped off the value of all US stocks in the market.
Also Read: Black Monday to dot-com bubble: 5 worst US stock market crashes in history
Japan's blue-chip Nikkei slid almost 8 per cent, European shares were down 6 per cent and the VIX stocks volatility gauge recorded its highest numbers since August, 2024.
Recession feared in the US after tariffs
Investors predict, as per Reuters, that with the increasing risk of recession, the US Federal Reserve could cut down interest rates as early as May.
Praveen John, managing director of investment firm Paleo Leon, stated, that rising fear and uncertainty due to Trump's tariffs had increased the odds of recession in the United States and globally as well.
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He said, as quoted by Reuters, "Fear and uncertainty have increased. People can say that this is good in the long run and that may be. But in the short run there's a lot of pain."
He added, “What is the end game? Is China going to capitulate? Is Europe going to capitulate or is Trump going to capitulate? At this point its not yet clear anybody is willing to back off.”
However, Donald Trump seemingly responded to the downturn in the US stock market on TruthSocial, saying, “The United States has a chance to do something that should have been done DECADES AGO. Don’t be Weak! Don’t be Stupid! Don’t be a PANICAN (A new party based on Weak and Stupid people!). Be Strong, Courageous, and Patient, and GREATNESS will be the result!”
