New York (AP) – President Donald Trump “Liberation Day” is coming soon, with stock markets falling on Monday from Wellington, New Zealand to Wall Street to Wellington.
New York saw a 0.8% drop in the S&P 500 One of the worst losses Of the past few years on Friday. It is well underway to finish the first three months of the year with a loss of 5.9%. Almost 3 years.
The Dow Jones industrial average fell 111 points (0.3%) as of 10:10am Eastern time, with Nasdaq composites 1.7% lower.
The decline in the US stock market followed the sale and spread around the world to build it early on Monday Customs Coming from Trump on Wednesday will get worse inflation And crush it growth For the economy. Trump says he’s moving ahead as he wants more manufacturing jobs in the US.
In Japan, the Nikkei 225 index fell by 4%. Korean Kospi sinks 3%, while French CAC40 fell 1.6%. In New Zealand, the NZX 50 slipped a more modest 0.1%.
Instead of stocks that could be part of the most dangerous investment possible, the prices of what is considered a safer bet when the economy appears to be unstable. gold Again, Rose temporarily crested $3,160 per ounce, heading for another record.
Treasury bond prices also rose, resulting in lower yields. The 2010 Treasury yield fell to 4.21% from 4.27% in the second half of Friday, down from around 4.80% in January. As tariff concerns are built up, it is falling. On Wednesday, the US is set to launch what Trump calls “mutual” tariffs. This is adjusted to match what each country sees as the burden on him, including value-added taxes.
Much is still unknown, including what the US government will do on “Liberation Day.” At Goldman Sachs, economists expect Trump to announce mutual tariffs of an average of 15%. They also raised forecasts for inflation and lowered it for the end of the year US economic growth.
Overall, they say that they currently have a 35% chance of a recession from a 20% forecast from previous forecasts, “reflecting decline in growth, a decline in confidence and statements from White House officials.”
If the April 2nd tariffs are less troublesome than investors fear – Trump, for example, may not include an additional tariff increase in China. But if they end up in the worst case scenario and it gets so scary that companies start cutting their workforce, what hasn’t happened so far could sink even more.
Of course, there is a possibility that April 2nd will rarely clear up uncertainty. According to other strategists at Michael Wilson and Morgan Stanley, it could be a mere “stepping stone for further negotiations” rather than a major “clearing event” for the market.
“This means policy uncertainty and the risk of growth are likely to last. How much of a problem,” Wilson wrote in the report.
One concern is that even if Trump’s tariffs are harsher than feared, all the uncertainty created by them can cause us alone. Household and business Freeze spendingwill hurt the economy, which had been running at a solid pace at the end of last year.
Either way, some familiar names were leading downwards on Wall Street on Monday.
Tesla fell 5.2% to 38.1% in the previous year. This has been one of the worst performers in the S&P 500 so far. Electric vehicle manufacturer brands are intertwined with CEOsElon Musk.
Musk is leading US Government Efforts to Reduce Expenseshe has become a target for raising political rage, and as a result, protests have flocked Tesla showrooms.
It’s a sharp drop following a surge of around 90% in the weeks of election day in November, when there was an idea that Musk and Trump’s close ties could help the company’s finances. Tesla stocks have almost returned to their location on November 5th.
Other big tech stocks have also helped to pull the market down. They were at the heart of recent divestments due to criticism that their stock prices were too high. Critics pointed out that in recent years their prices have risen much faster than already burgeoning profits.
nvidiait’s riding a frenzy artificial intelligence Technology, which will become one of Wall Street’s most influential stocks, has dropped by 4%, down from previous year’s losses of 21.6%.
The company’s stocks that customers need to feel washed away enough to spend have been one of Monday’s worst performers so far this year.
United lost 6.5%, while Delta gave up 4.5%.
Cooper was on the winning side of Wall Street. 16.1% jumped after mortgage servicers said they were being purchased by mortgage rockets. All stock trading worth $9.4 billion. This deal takes place a few weeks after the rocket Redfin, acquiring real estate listing companyand Rocket’s shares fell 7.3%.
In overseas stock markets, Thai set lost 1.5% A powerful earthquake With a focus on Myanmar, the region has rattled and caused widespread destruction of the country, also known as Burma, and less damage in places like Bangkok.
The Italian Thai development stock, partially constructed developers of a collapsed 30-storey high-rise office building, reduced by 26.9%. Thai officials said they were investigating the cause of the disaster and said dozens of construction workers have gone missing.
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AP writers Junzhe Jiang and Matt Ott contributed.
