Global Markets Spiral as Tariff Wars Intensify

Global financial markets were disrupted after President Trump imposed reciprocal tariffs to counter those placed on U.S. goods by other nations. The announcement led to a notable fall in stock markets, with investors seeking refuge in bonds and gold. The tariffs have exacerbated global trade tensions, impacting economic growth expectations.

Global markets were sent into disarray on Thursday following U.S. President Donald Trump's announcement of reciprocal tariffs, matching duties placed on American goods by foreign nations. The immediate consequence was a sharp decline in stock markets, prompting investors to turn to safer assets like bonds, gold, and the yen.

The response from investors was significant, as reflected in the 3% drop in S&P 500 futures, a strong indicator that Wall Street would face substantial losses upon opening. Meanwhile, U.S. Treasury yields and China's yuan both experienced notable declines, further underlining the market's anxieties regarding the tariff move.

Analysts warn that the continued uncertainty over potential retaliatory tariffs from the EU, UK, and other regions could trigger further ripples through the global economy. The evolving tariff battle is seen as a key factor in weakening investor confidence and possibly leading to a downward revision of growth expectations globally.

(With inputs from agencies.)