Global Markets Jitter: Stocks Drop Amid Escalating Trade Tensions

Global equity markets witnessed a significant downturn as trade tensions, particularly marked by President Trump's new tariff threats, fueled investor fears of inflation and slowed growth. The decline in major indices like the S&P 500 and Dow Jones underscores the market's vulnerability amid ongoing trade warfare concerns.

Global equity markets suffered sharp losses Thursday as trade tensions escalated, with the S&P 500 confirming its entry into a correction phase. Investors are increasingly turning towards safer assets, spurred by President Trump's latest tariff threats which have heightened fears of inflation and impeded growth expectations.

The president's vow to impose a 200% duty on European beverage imports, following heightened tariffs on U.S. steel and aluminum, has intensified market anxieties. Meanwhile, U.S. Treasury yields fell as equities faced a selloff, reflecting a strong demand for government debt amidst the trade-driven economic uncertainty.

Oil and gold markets also reflected the turmoil, with oil prices declining and gold nearing a record high as investors bet on monetary policy adjustments amid elevated economic uncertainties. The Dow Jones and Nasdaq indices similarly marked sharp declines, highlighting the broader market fragility in response to trade conflicts.

(With inputs from agencies.)