Wall Street experienced a dramatic downturn as sweeping tariffs spurred an accelerating trade war. U.S. markets tumbled for a second straight day with the Nasdaq Composite confirming its descent into bear market territory and the Dow Jones Industrial Average sliding into a correction.
Over the last two days, the Dow dropped 9.3%, the S&P 500 fell 10.5%, and the Nasdaq declined 11.4%. A record-breaking trading volume of approximately 26.79 billion shares underscored the mounting investor anxiety, with the CBOE Volatility Index reaching levels unseen since April 2020.
Market strategist Steve Sosnick emphasized that the extent of the downturn hinges on how firmly the current U.S. administration adheres to its tariff policies. Investors are now bracing for potential retaliatory moves from trading partners, as nations recalibrate their responses.
The global ripple effects intensified when China's finance ministry announced a 34% tariff on all U.S. goods, effective from April 10. In response, leaders from Britain, Australia, and Italy have commenced talks to assess their next steps in light of the escalating trade tensions.
Adding to the uncertainty, Federal Reserve Chair Jerome Powell warned that the hefty tariffs could trigger higher inflation and slower economic growth, posing new challenges for U.S. monetary policy. Safe-haven buying in the bond market pushed the yield on 10-year Treasury notes to below 4%, while U.S. bank stocks suffered further declines.
The cumulative impact has left global economies and investors on edge, as major U.S. indices falter and signals point to a rapidly evolving financial landscape. The current market volatility serves as a reminder of the far-reaching implications of policy shifts in a globally interconnected economy.
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Trump tariff tailspin worsens, Nasdaq confirms in bear market
cgtn.com
