Global Market Chaos: Trump's Tariff Turmoil Impacts Stocks

U.S. President Donald Trump's recent tariff announcement sent shockwaves through global markets, causing significant declines in major stock indices like the S&P 500, Dow, and Nasdaq. Investors reacted by moving capital to safer assets. Experts anticipate potential market recovery as negotiations progress, although fears of a global slowdown loom.

Global stock markets were thrown into disarray on Thursday following U.S. President Donald Trump's announcement of new reciprocal tariffs. The move, intended to counter tariffs placed on U.S. goods by other countries, resulted in dramatic drops across major indices, with the S&P 500 and Dow down around 4% and the Nasdaq falling more than 5%.

In response, investors fled to traditionally safer investments such as bonds, gold, and the yen. U.S. Treasury yields decreased, China's yuan reached a seven-week low, and the dollar faced substantial selling pressure. Analysts voiced concerns over potential inflationary impacts, company profit pressures, and the broader implications for global trade.

Experts highlighted the market volatility as a temporary buying opportunity, with expectations that Trump's administration will seek resolution through negotiations. Nonetheless, fears of prolonged economic uncertainty and a possible global recession linger as nations consider retaliatory measures, potentially escalating trade tensions further.

(With inputs from agencies.)