Trump's tariffs cause panic in Wall Street, loss of $2 trillion!
The tariffs imposed by US President donald trump on countries around the world had a direct impact on Wall Street, where a massive sell-off was seen on Thursday. With this decision of trump, the threat of trade war and economic recession is now looming. Its worst effect was on the US stock markets themselves. Amidst concerns in the global financial market, this is the first time after Covid-19 that the US stock market has been in such a condition. On the one hand, the S&P 500 index fell by about 4.8%, which is such a big fall in a day after june 2020. Due to this fall, the market has suffered a loss of about $2.4 trillion i.e. 200 lakh crores.
Apart from this, the Dow Jones Industrial Average and Nasdaq Composite also saw the same decline, which was seen in 2020 during the Corona epidemic. The Dow Jones Industrial Average fell 4% (1679 points) and the Nasdaq Composite fell 6%.
Wall Street faltered
After the tariffs, amid fears of weak economic growth and inflation, Wall Street appeared to be faltering. From big tech companies and crude oil to other currencies against the US dollar, everything continued to decline. According to the Associated Press, the price of gold, however, increased and investors found it best to invest in it. However, it was certain that global investors were fully aware of Trump's announcement of reciprocal tariffs. Therefore, its clear impact was seen on the health of the S&P 500 index and it recorded a record decline of 10%.
Mary Ann Bartels, Chief Investment Officer at Century Wealth, said that it is worth noting that despite these circumstances, the US President has surprised everyone by creating a serious situation with tariffs. trump has imposed a tariff of at least 10% on goods imported into the US on all countries of the world. Whereas, these tariff rates are very high for many other countries including China, european union, india and Cambodia.
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