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Wall Street shivered, and the shock level unprecedented since Coidid’s outburst went through the financial markets on Thursday because of the care of the USA damage Donald Trump The latest set of tariffs could make economies on all continents, including his own.
The S&P 500 sank 4.8%, more than in the main markets throughout Asia and Europe, for its worst day since the pandemic broke down the 2020 economy. The industrial average of Dow Jones dropped 1,679 points, or 4%, and the Nasdaq composite dropped 6%.
In Canada, S&P/TSX, the composite index closed 971 points, or 3.8%, as the markets cared that the latest circle of US tariffs could sink the global economy in the recession. The Canadian clothing brands, including Aritzia and Lulululemon, were among companies that recorded shares prices.
Indexes have fallen around the world on shares abroad. The French Cac 40 fell 3.3% and the German Dax lost 3% in Europe.
Japanese Nikkei 225 sank 2.8%, Hong Kong Hang Seng lost 1.5%and the South Korean Kosice 0.8%.
It is a little spared in financial markets because the fear has glowed a potentially toxic mixture of weakening economic growth and greater inflation that the tariffs can create.
All, from raw oil to large technological stocks to US dollar value compared to other currencies. Even the gold, which recently hit the records because investors were looking for something safer to possess, withdrew lower. Some of the worst hits of smaller American companies, and the Russell 2000 smaller index dropped 6.6% to withdraw more than 20% below the record.
Investors around the world knew that Trump would announce on Wednesday, wiping the set of tariffs, and the fears around him have already withdrew the main measure of Wall Street Health, the S&P 500, 10% below all the time. But Trump still managed to surprise them with “the worst scenario for tariffs”, according to Mary Ann Bartels, the Chief Director for investing in Sanctory Wealth.
Trump has announced a minimum of 10% on imports, with a tax rate much higher on products from certain countries like China and those from the European Union. It is a “credible” tariff, which would face the unseen levels in about a century, could reduce the economic growth of American economic growth this year and increase the inflation of close to 5%, according to UBS.
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Such a hit would be so big that “makes someone’s rational mind, he believes that they are kept low,” according to Bhana Baweji and other UBS strategies.
Wall Street has long assumed that Trump will only use tariffs as a tool for negotiations with other countries, not as long -term politics. But the announcement on Wednesday can suggest that Trump sees Tariffs more as a help in dealing with an ideological goal than as an initial stake in a poker game. Trump spoke on Wednesday about the wrestling of manufacturing affairs back to the United States, a process that could last for years.
If Trump follows his tariffs, the shares prices may have to fall much more than 10% of his permanent maximum to reflect a recession that could follow, along with a goal that could be taken by US companies. The S&P 500 is now reduced by 11.8% of its record in February.
“The markets can actually be underestimated, especially if these rates are shown to be final, given the potential effects on global consumption and trade,” said Sean Sun, a portfolio manager at Thornburg Investment Management, although he sees Trump’s announcement on Wednesday as a more initial move than the end point for politics.
Trump offered an exciting reaction after he was asked about the market fall as he left the White House on Thursday to fly to his Golf Club in Florida.
“I think that’s very good,” he said. “We have surgery, like when the patient acts and that’s a big deal. I said that would be the case.”
One savage ticket is that federal reserves could reduce interest rates to support the economy. This was done late last year before pausing in 2025. Lower interest rates help by facilitating US companies and households and spending households.
Contributions to the cash registers partly collapsed on the growing expectations for the arrival of the reduction of the rate, along with the general fear of the health of the American economy. The yield on the 10-year treasury fell to 4.04% from 4.20% late Wednesday and approximately 4.80% in January. It is a huge move for a bond market.
Fed can have less freedom to move than he would like. Although lower rates can go on economy, they can also be pushed up to inflation. And worries are already getting worse about the tariff, with US households particularly advocating for a sharp increase in their accounts.
The American economy, of course, is still growing. The report on Thursday says that fewer US workers have applied for unemployed compensation last week. The economist was expecting to see the difficulties in unemployment, and the relatively solid labor market was Linchpin, which holds economically from the recession.
A separate report states that activity for American transport, finance and other companies in the service industry has grown last month. But the growth was weaker than expected, and the companies gave a mixed picture to see the conditions.
He cares about the potentially stagnant economy and high inflation they have demolished all kinds of stocks, leading to a fall by four of every five that make S&P 500.
Best Buy fell 17.8% because the electronics it sells is made worldwide. United Airlines lost 15.6% as customers are worried about the global economy may not fly so much for business or feel comfortable enough to rest. The goal dropped 10.9% in the midst of the worry that his customers had already squeezed still high inflation, maybe even more stress.
All in all, S&P 500 dropped 274.45 points to 5,396.52 industrial average Dow Jones sank 1,679.39 to 40,545.93, and Nasdaq composite dropped 1,050.44 to 16.550.61.
– With Global News ‘files’ ari Rabinovitch and Sean Boynton and Canadian printing
