Trade Tension Triggers Market Turbulence: U.S.-China Tariff Drama Unfolds
U.S. stocks plunged as President Trump accused China of breaching a tariff deal, escalating a trade war. Market indexes fell, driven by uncertainty and fluctuating investor confidence. Despite the losses, optimistic economic data and hopes of future agreements maintained some market gains.
Friday witnessed a tumultuous day on Wall Street as key indexes dropped following U.S. President Donald Trump's claims that China breached a tariff agreement, intensifying an already volatile trade war.
In his statement on Truth Social, Trump gave no details on the alleged violation or potential responses, deepening confusion among investors who previously felt they understood the trade direction. Economic data provided slight relief, showing an uptick in consumer spending, while experts anticipate a Federal Reserve rate cut in September.
Despite the stock market's turbulence, some indices showed resilience, with the Nasdaq on track for its best month in years, propelled by optimistic economic indicators and regulatory developments.
(With inputs from agencies.)
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