The US stock market fell on Monday, fearing that President Donald Trump’s rate policies could bring the world’s largest economy to a slowdown. After many years of effective growth, the US financial exceptionalism has been asked.
The stock market is on the way with concerns about the economic downturn that has wiped out $ 1.7 trillion dollars from the most seen equity index in the SP PD P500-world. They fell by 8.7 percent and pulled down 9 percent down all the time they reached February February.
The Tech -Hewi Nasdack -100 posted the worst day from 2022 and made it worth more than $ 1 trillion. Investors sold shares in the so-called “grand seven”-Alphabet, Amazon Mezon, Apple Pal, Microsoft, Meta, Nvidia and Tesla.
What caused the fall?
Trump’s backdrop-in-day declarations showed that investors did not have investors and the US economy could get a big recession or even a recession.
Last week, Trump hit 25 percent of the imports from Mexico and Canada and raised the rate on Chinese goods by 20 percent, only two days later it will announce that it will. Delay As of April 2, some Mexican and Canadian rates rise.
Trump has also threatened to impose global arrangements for many of the time: Every country chosen on April 2 has to face the same charge. 25 % rate on imports Steel and aluminum Wednesday will also be implemented.
The rates set to increase the rate of inflation and customers have to suffer more expense. Many Americans can be forced to tighten their belts, which will reduce growth and increase unemployment.
Is on Deduction in public sector And Geographical stress US policy instability is also increased. On CNBC, Beneberg Bank’s main economist Holgar Sming described Trump as “chaos and confusion agents.”
“What is coming from the Oval Office … just in the oval office,” Stock Exchange is a community of investment, confusion, confusion and mixed confidence in the investment. ” Video Posted on x.
What did Trump actually say?
One in Interview With Fox News broadcast on Sunday, Trump suggested that the risk of economic downturn – if that happens – it would be useful for the wider economic change that is trying to engine.
“I don’t like to guess such things. There is a period of infection because what we are doing is very big, “Trump said. “We are bringing back to the rich America. This is a big thing… it takes a while, but I think it should be nice for you. “”
Asked why they would increase prices on US imports, they said, “You will get it. In the meantime, what is the estimate? The interest rates are below. “”
He also doubled on his trade protective agenda and said, “We (America) have been torn down on the never -seen levels before and we will get a lot back in it.”
How did the White House respond?
Yesterday, when Wall Street was afraid of, the White House retained a optimistic view of large investment promises from corporate leaders.
White House spokesperson Kush Desai on Monday said that the CEO had responded to Trump’s “America First” agenda, which was marked by rates and notes, promising “investment commitment”. He said, “Thousands of new jobs will create” because of this commitment.
Meanwhile, in an interview to CNBC on Monday, Kevin Hasset of Trump’s National Economic Council, Kevin Hasset, made the financial market as “Blips in Data”.
Trump’s Commerce Secretary Howard Lutkin told the NBC’s Meet the Press: “There will be no recession in the United States … You are going to see the biggest growth set of Higal coming from the United States in the next two years,” Luttnik said.
Wall Street’s Jitters have spread elsewhere?
Asian shares fell rapidly on Tuesday morning, as sales in the previous day’s US market have increased globally. Since September, Japan’s Nikkei shares fell about 5 percent.
Chinese stocks were also not resistant to downbite mood. The blue-chip index fell 0.5 percent, while Hong Kong’s Hong Seng index was 0.8 percent. Australia’s benchmark index also declined by 8.8 percent.
Investors are crowded during the uncertainty of the Safe Heven Property-which in the market-now demanding Japanese Yen at a high level of five months, at 147.07 per dollar. Swiss Frank has also become stronger. Both variables are considered stable due to their approximate financial background and low inflation environment.
At the distance of last month’s record, gold is considered to be economically safe for $ 5,895.7575 per ounce. Gold has increased by 10 per cent in 2025 as so far after 27 per cent.
Global gross domestic production usually fell down the second day on Tuesday. Brent Futures, Global Benchmarks, 0.65 percent closed to $ 68.83.
What will happen next?
Unlike Trump’s first deadline, the president of the United States is determined to follow the restricted trade system at this time when the economy or stock market cracks are often a strategic factor.
From this, City analysts reduced their recommendations from “overweight” from US shares to “neutral”, and the US economy cannot be overturned in the coming months.
Goldman Sax economists have increased the possibility of a downturn in the last 12 months from 15 percent in the last 12 months, while JP Morganchas has reduced the possibility of “extreme American policies” from 40 percent to 40 percent of the potential.
The income (or refund rate) fell 0.05 per cent yesterday to the two -year -old American government bonding with interest rate expectations. Similarly, many have expected the American Federal Reserve to reduce the cost of borrowing.
Fed’s benchmark rate is currently sitting 3.3 percentWhich is high in accordance with recent historical standards.
On Monday, the trade compared to the base points of 5.7575 percent .They now cut the Fed’s interest rate 0.85 percent. According to the London Stock Exchange Group. Low debt costs are designed to help the growth of a slowdown.
Senior Asia Pacific rating of TD Securities, Prashant Nuhnah, told the Reuters News Agency, “Now the market has received a memo that the market has tried to close the band-A”.
Trump has expressed his desire as the first day of the post American inflation?? At the same time, he has raised trade rates in the middle of his presidency. He is unlikely to achieve the objectives of both policies at the same time.
“The recession can be a sterile drug… now it is a controlled destruction,” said Neunah.