S&P 500 Index Markets and Stocks Down Today Due to Donald Trump's New Tariffs
- Concern over new global tariffs
- SP 500 Index Down Today Quoted at 5.561,00 with a Drop of 1,1%
- Possible economic recession in the US
As the US president announces a new set of tariffs, set to take effect soon, US stock markets are showing concern. US stock futures fell significantly on Monday, suggesting a resumption of losses after an already challenging period.
According to Donald Trump, the emerging tariff plan aims to impose tariffs equivalent to those applied by other countries on American products, in an attempt to safeguard the US economy from what is perceived as unfair competition. The move marks an escalation in global trade tensions, defying previous expectations of a more moderate approach.
In futures trading, the Nasdaq 100 fell nearly 1,6%, while the SP 500 fell 1,1%. The Dow Jones Industrial Average was not far behind, falling about 0,7%, representing a loss of about 270 points. The downtrend reflects growing investor nervousness about the potential economic impact of the new tariffs.
Additionally, U.S. Treasury bonds saw a sharp rise, indicating a flight to safety by investors fearing a possible recession in the U.S. The yield on two-year bonds fell six basis points to 3,85%, hitting a six-month low. In turn, the yield on 10-year bonds fell to 4,20%. “With the risk of a recession in the U.S., the short and intermediate part of the U.S. yield curve is the best shelter,” commented Jamie Niven, manager at Candriam, in a statement to Bloomberg.
As so-called “Liberation Day” approaches, with the broader set of U.S. tariffs set to be unveiled on April 2, markets are bracing for more uncertainty. Donald Trump has already said that the new tariffs will hit “every country” from the start, dampening hopes for a more restrained effort. A recent report in The Washington Post suggested that the president is encouraging his aides to take an even more aggressive stance on imposing tariffs.
At the time of publication, the price of Bitcoin was quoted at US$82.454,59 with a drop of 1% in the last 24 hours.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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