Trade Turbulence: Stocks Slide Amid Tariff Talks
Stocks and indices like S&P 500 and Nasdaq fell over 2% due to President Trump's tariff threat on Chinese goods. Technology shares led the decline, and commodities such as oil and gold reacted sharply. European markets were also affected, reflecting global economic concerns and potential trade tensions.
On Friday, markets took a hit, with major U.S. stock indices like the S&P 500 and Nasdaq each dropping more than 2%, spurred by President Donald Trump's consideration of a "massive increase" in tariffs on Chinese goods. This news sent technology stocks tumbling, with semiconductor stocks plummeting by 5.4%.
The impact was not limited to American markets; European stocks also slid, erasing weekly gains after Trump's statement. The STOXX 600 suffered its worst decline in over a month. With U.S. government operations stalled due to a federal shutdown, Treasury yields decreased, further emphasizing market uncertainty.
In commodities, oil prices fell due to lowered demand outlooks, while gold reached a significant milestone, reacting to economic anxieties. Worldwide, currencies fluctuated, and political shifts in Japan and France also contributed to market volatility, underscoring the far-reaching consequences of escalating trade tensions.
(With inputs from agencies.)
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