Introduction
President Donald Trump’s recent announcement to drastically increase import tariffs has triggered a significant decline in US stock markets. These measures not only affect the US economy but also the global markets, resulting in substantial losses.
Impact on US Stock Markets
Following the tariff announcement, US stock markets experienced noticeable declines:
- Dow Jones Industrial: A drop of over 8% and the most severe weekly loss in years. On Friday, the Dow fell another 5.50%, reaching its lowest level since mid-last year.
- S&P 500: Fell by 5.97% and experienced its largest weekly drop since March 2020.
- Nasdaq: Lost 6.07% and dropped to its lowest level since May 2024.
Impact on Technology Stocks
In particular, technology stocks were hit hard:
- Chip Manufacturers: Companies like Nvidia, Applied Materials, and others reported losses of up to 13%.
- Apple: The value of Apple shares dropped by over $500 billion in two days, down 7.3% on Friday alone.
Global Reactions
Reactions from other countries and regions intensified the situation:
- China: Imposed retaliatory tariffs on US imports.
- European Union: Postponed retaliatory tariffs on US products to facilitate talks.
Cryptocurrency Markets
The cryptocurrency markets are also feeling the impacts of global uncertainty:
- Bitcoin: Lost 6.11% and fell below the $81,200 mark.
Economic Concerns
The measures fuel fears of a recession and potential stagflation in the US.
Overall, Trump’s tariff measures create significant uncertainties that could have long-lasting effects on the global economy.