Global Markets Plunge: $9.5 Trillion Lost in Three Days
U.S.-China trade tensions lead to unprecedented drops in major global stock indices.
Global financial markets experienced a significant downturn over the last three days, resulting in a loss of approximately $9.5 trillion in market value as investors reacted to persistent U.S. tariffs on international trade and retaliatory measures from China.
The declines were particularly sharp in the U.S., where the S&P 500 index fell nearly 20% from its all-time highs, while the Nasdaq saw a 24% drop from its peak.
The Dow Jones Industrial Average experienced its first two consecutive losses exceeding 1500 points and closed under significant pressure as investors navigated uncertainty.
President Donald Trump reiterated his commitment to the tariffs imposed on Chinese imports, threatening to escalate them further if China did not reduce its tariffs on U.S. goods.
He indicated that starting April 9, he could implement additional tariffs of up to 50% on Chinese imports, simultaneously stating that the stock market's decline was not a deliberate outcome of his policies.
Amid these developments, U.S. markets lost approximately $6.6 trillion in value over Thursday and Friday alone, marking the largest loss for a two-day period ever recorded, according to market data.
The trading environment became increasingly volatile as investors sought safe-haven assets such as government bonds, amid growing fears of an impending economic slowdown.
Globally, Asian markets were deeply affected, with the Nikkei index in Japan reaching its lowest level in 18 months, retreating as much as 8.8% before closing down 7.8%.
Major banks in Japan experienced substantial declines, with some losing up to 17% in a single session.
Hong Kong’s stock market witnessed its worst day since the 1997 Asian financial crisis, plunging over 13%.
In mainland China, the Shanghai Composite Index fell by 7.34%.
European markets also faced severe losses, with the DAX index in Germany dropping more than 5% and the CAC in France experiencing similar declines.
The Stoxx 600 index across Europe declined by 4.5%, reflecting the widespread impact of the trade tensions.
In Turkey, the Istanbul stock exchange saw a decrease of over 3%, primarily driven by a sell-off in the banking sector and prevailing concerns regarding the Turkish lira's stability amid geopolitical tensions.
The primary index fell 2.8% at open, reflecting the global sell-off.
Analysts have noted that the combination of trade wars and economic uncertainty is creating a challenging environment for markets worldwide, with financial metrics indicating a strong bearish trend.
Investors expressed concern about the long-term implications of the ongoing conflict between the U.S. and China and the effects of new tariffs set to impact multiple countries, including significant penalties on U.S. imports from both China and the European Union.
As markets continue to navigate through this turbulence, the dynamics of international trade and monetary policy will likely remain at the forefront of investor sentiment and market performance.
The declines were particularly sharp in the U.S., where the S&P 500 index fell nearly 20% from its all-time highs, while the Nasdaq saw a 24% drop from its peak.
The Dow Jones Industrial Average experienced its first two consecutive losses exceeding 1500 points and closed under significant pressure as investors navigated uncertainty.
President Donald Trump reiterated his commitment to the tariffs imposed on Chinese imports, threatening to escalate them further if China did not reduce its tariffs on U.S. goods.
He indicated that starting April 9, he could implement additional tariffs of up to 50% on Chinese imports, simultaneously stating that the stock market's decline was not a deliberate outcome of his policies.
Amid these developments, U.S. markets lost approximately $6.6 trillion in value over Thursday and Friday alone, marking the largest loss for a two-day period ever recorded, according to market data.
The trading environment became increasingly volatile as investors sought safe-haven assets such as government bonds, amid growing fears of an impending economic slowdown.
Globally, Asian markets were deeply affected, with the Nikkei index in Japan reaching its lowest level in 18 months, retreating as much as 8.8% before closing down 7.8%.
Major banks in Japan experienced substantial declines, with some losing up to 17% in a single session.
Hong Kong’s stock market witnessed its worst day since the 1997 Asian financial crisis, plunging over 13%.
In mainland China, the Shanghai Composite Index fell by 7.34%.
European markets also faced severe losses, with the DAX index in Germany dropping more than 5% and the CAC in France experiencing similar declines.
The Stoxx 600 index across Europe declined by 4.5%, reflecting the widespread impact of the trade tensions.
In Turkey, the Istanbul stock exchange saw a decrease of over 3%, primarily driven by a sell-off in the banking sector and prevailing concerns regarding the Turkish lira's stability amid geopolitical tensions.
The primary index fell 2.8% at open, reflecting the global sell-off.
Analysts have noted that the combination of trade wars and economic uncertainty is creating a challenging environment for markets worldwide, with financial metrics indicating a strong bearish trend.
Investors expressed concern about the long-term implications of the ongoing conflict between the U.S. and China and the effects of new tariffs set to impact multiple countries, including significant penalties on U.S. imports from both China and the European Union.
As markets continue to navigate through this turbulence, the dynamics of international trade and monetary policy will likely remain at the forefront of investor sentiment and market performance.
Translation:
Translated by AI
