Global Markets Plunge as Trade Tensions Escalate
World stock market losses reach nearly $10 trillion amid rising tariffs and escalating trade war rhetoric.
Global financial markets experienced significant declines, with the total market value of stocks plummeting by approximately $9.5 trillion over a three-day period.
This downturn has been largely attributed to President Donald Trump's firm stance on maintaining sweeping tariffs imposed on various countries, which has provoked retaliatory measures from China, raising concerns about the potential impact on the global economy.
In the United States, stock exchanges reported substantial losses, with the American stock market losing around $6.6 trillion over Thursday and Friday alone—the largest two-day drop on record according to Dow Jones Market Data.
The sharp decline reflects a waning investor confidence in the likelihood of a policy reversal from the Trump administration regarding tariffs.
On social media platform Truth Social, President Trump issued a direct threat to China, stating that if the country does not withdraw its tariffs on American imports, which he characterized as excessive—a 34% rate—he would impose an additional 50% tariff starting April 9, thereby terminating all trade discussions with China.
During early trading on Wall Street, major indices opened sharply lower, with investors seeking shelter in government bonds due to fears surrounding global economic growth linked to the ongoing tariff disputes.
The Dow Jones Industrial Average fell by 0.45%, while the S&P 500 index rebounded slightly by 0.37% after an initial decline.
The Nasdaq Composite saw a recovery, increasing by 0.79%.
In Europe, stock markets also suffered, hitting their lowest levels in 16 months, as investors assessed the likelihood of an impending recession following the recent announcement of broad U.S. tariffs.
The Stoxx 600 index dropped by 1.23%, Germany's DAX declined by 3.8%, the UK’s Financial Times index fell by 4.16%, and France's CAC index decreased by 4.51%.
Meanwhile, Japan's Nikkei index fell to its lowest point in a year and a half, driven down by a significant decline in the banking sector, which saw stocks drop by over 17% during the trading session.
Overall, the Nikkei dropped by 8.8%, reflecting ongoing global recession fears exacerbated by tariff-related uncertainties.
This downturn has been largely attributed to President Donald Trump's firm stance on maintaining sweeping tariffs imposed on various countries, which has provoked retaliatory measures from China, raising concerns about the potential impact on the global economy.
In the United States, stock exchanges reported substantial losses, with the American stock market losing around $6.6 trillion over Thursday and Friday alone—the largest two-day drop on record according to Dow Jones Market Data.
The sharp decline reflects a waning investor confidence in the likelihood of a policy reversal from the Trump administration regarding tariffs.
On social media platform Truth Social, President Trump issued a direct threat to China, stating that if the country does not withdraw its tariffs on American imports, which he characterized as excessive—a 34% rate—he would impose an additional 50% tariff starting April 9, thereby terminating all trade discussions with China.
During early trading on Wall Street, major indices opened sharply lower, with investors seeking shelter in government bonds due to fears surrounding global economic growth linked to the ongoing tariff disputes.
The Dow Jones Industrial Average fell by 0.45%, while the S&P 500 index rebounded slightly by 0.37% after an initial decline.
The Nasdaq Composite saw a recovery, increasing by 0.79%.
In Europe, stock markets also suffered, hitting their lowest levels in 16 months, as investors assessed the likelihood of an impending recession following the recent announcement of broad U.S. tariffs.
The Stoxx 600 index dropped by 1.23%, Germany's DAX declined by 3.8%, the UK’s Financial Times index fell by 4.16%, and France's CAC index decreased by 4.51%.
Meanwhile, Japan's Nikkei index fell to its lowest point in a year and a half, driven down by a significant decline in the banking sector, which saw stocks drop by over 17% during the trading session.
Overall, the Nikkei dropped by 8.8%, reflecting ongoing global recession fears exacerbated by tariff-related uncertainties.
