Global Markets Plunge as Tariff Tensions Loom

Global stocks fell sharply due to U.S. President Trump's tariff plans and China's retaliatory measures. Concerns over economic growth and potential central bank rate cuts drove banking stocks lower. Market indices experienced significant losses, with recession fears rising. Investors sought safety in government bonds as market volatility increased.

Global stock markets experienced a dramatic downturn as President Trump's extensive tariff plans on international imports triggered a $2.4 trillion wipeout on Wall Street equities. China's retaliatory 34% tariff on U.S. goods intensified market anxiety, leading to significant banking stock declines and speculation regarding central bank rate cuts.

The STOXX 600 and Nikkei 225 registered substantial losses, while U.S. markets followed suit with major drops in the S&P 500 and Nasdaq indices, reminiscent of pandemic-era sell-offs. Amid heightened market volatility, as indicated by the VIX index, recession fears intensified, prompting investors to brace for potential Federal Reserve rate adjustments.

Bank stocks were particularly hard-hit, with mounting pressure on profit margins due to potential rate cuts and stagnating growth prospects. Currency fluctuations and falling oil prices added to investor concerns. Observers suggested that only diplomatic advancements on trade policies might mitigate the current financial turmoil.

(With inputs from agencies.)