Global Stock Markets Fall Ahead of Trump Tariffs/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Global stock markets tumbled as fears over former President Donald Trump’s upcoming “Liberation Day” tariffs rattled investors. The S&P 500 and Nasdaq saw sharp declines, with major global indices following suit. Uncertainty over tariffs, inflation, and economic slowdown contributed to widespread market losses.
Global Stock Sell-Off Ahead of Trump Tariffs: Quick Looks
- S&P 500, Dow, and Nasdaq all opened lower on Monday.
- Trump’s incoming “reciprocal tariffs” spark fears of higher inflation and economic stagnation.
- Asian and European stock markets experienced significant losses.
- Safe-haven assets like gold and Treasury bonds rallied.
- Tesla, United Airlines, and other consumer-sensitive stocks took heavy hits.
- Mr. Cooper stock surged after a $9.4B acquisition by Rocket.
- Earthquake in Myanmar affected Thai markets and halted construction operations.
Global Stock Markets Fall Ahead of Trump Tariffs
Deep Look
As financial markets opened Monday, global stocks plummeted in anticipation of President Donald Trump’s upcoming economic shift—dubbed “Liberation Day.” With sweeping tariffs set to begin on Wednesday, investors braced for potential inflation spikes and slowed economic growth.
Wall Street Declines Continue
In the U.S., major indices extended their downward momentum from Friday. The S&P 500 slid 1.3%, heading for a quarterly loss of 6.4%—its worst in nearly three years. The Dow Jones Industrial Average dropped 295 points (0.7%), and the tech-heavy Nasdaq plummeted 2.3%.
The sharp declines come amid mounting anxiety over Trump’s protectionist tariff agenda. Branded as “reciprocal tariffs,” the new trade measures aim to counter foreign policies that Trump claims disadvantage American manufacturers. These tariffs could lead to higher consumer prices and pressure business investment.
Global Markets Join the Slide
The market sell-off wasn’t limited to Wall Street. Across Asia and Europe:
- Japan’s Nikkei 225 plunged 4%
- South Korea’s Kospi dropped 3%
- France’s CAC 40 fell 1.5%
Even emerging markets like Thailand saw fallout. The SET index fell 1.5%, amplified by a powerful earthquake in neighboring Myanmar that caused a partial building collapse and led to further investor jitters.
Investors Turn to Safe-Haven Assets
With equity markets roiling, investors rotated into safer instruments. Gold prices soared above $3,150 per ounce, pushing toward a new record. Meanwhile, U.S. Treasury bond prices rose, sending yields lower. The 10-year Treasury yield fell to 4.19%, down from 4.27% on Friday and well below January’s 4.80%.
These moves reflect investor unease. Even if Trump’s tariffs are scaled back, analysts warn the unpredictability could cause households and corporations to hold back spending, potentially throttling a previously resilient U.S. economy.
Tech and Travel Stocks Under Pressure
Tech stocks—once market darlings—led the retreat. Tesla was hit hard, falling 7.3%, bringing its year-to-date loss to 39.5%. The electric vehicle giant has been battered by CEO Elon Musk’s deep political entanglements, including his role in government spending cuts and ties to Trump.
Despite a 90% rally after the November election, Tesla’s stock has now dipped below its early November levels.
Other tech heavyweights also tumbled:
- Nvidia fell 4.7%, marking a 22.1% year-to-date decline, as AI-driven stock enthusiasm cooled.
Consumer-sensitive sectors were also vulnerable. United Airlines and Delta Air Lines dropped 6.8% and 5.3% respectively, as investors questioned whether consumers would curtail travel spending.
Deal Activity Brings Isolated Gains
Not all was bleak on Wall Street. Mortgage services provider Mr. Cooper surged 18.3% after announcing a $9.4 billion all-stock acquisition by Rocket Companies, which recently acquired Redfin. However, Rocket’s own shares fell 7.8% following the news.
Earthquake Shakes Regional Markets
In Southeast Asia, a powerful earthquake centered in Myanmar rattled regional markets. The resulting devastation impacted infrastructure and led to the collapse of a high-rise under construction in Bangkok. Shares of Italian Thai Development, the developer, fell 27% as Thai officials launched investigations.
You must Register or Login to post a comment.