Wall Street took a beating on Thursday, with major indexes tumbling as investors grappled with the prospect of a renewed trade war. The sell-off was triggered by former President Trump's announcement of sweeping new tariffs on goods imported from China and the European Union. These tariffs, intended to protect American industries, have sparked immediate backlash from both China and the EU, who vowed to implement retaliatory measures.
The Dow Jones Industrial Average suffered a significant decline, while the S&P 500 and Nasdaq Composite also experienced sharp losses. The technology sector was particularly hard hit, as many tech companies rely heavily on international trade. Analysts warn that further escalation of trade tensions could disrupt global supply chains and negatively impact corporate profits.
Concerns about inflation and rising interest rates also contributed to the market's unease. The Federal Reserve is expected to continue raising interest rates in the coming months to combat inflation, which could further dampen economic growth. Investors are now bracing for a period of increased volatility and uncertainty as the global trade landscape shifts.
US Stocks Plunge Amid Tariff Fears, Echoing 2020 Losses
US stocks experienced their biggest drop since 2020 on Thursday, fueled by concerns over potential global trade wars. The market reacted sharply after former President Trump announced new tariffs on goods from China and the European Union. Both China and the EU have promised to retaliate, raising fears of escalating trade tensions that could hurt the global economy. Investors are now closely watching for further developments and the potential impact on corporate earnings.
Source: Read the original article at BBC