Global Trade Tensions Trigger Major Wall Street Slump

Wall Street experienced significant declines for the second day as China retaliated against U.S. tariffs. As a result, global markets fear an economic downturn, with major indices like the Nasdaq and Dow Jones falling sharply. Prominent companies and U.S. bank stocks also declined amid escalating trade tensions.

Wall Street saw a significant downturn for the second consecutive session on Friday, with the Nasdaq nearing a bear market. China's new tariffs on all U.S. goods in retaliation to the Trump administration's sweeping levies have escalated a global trade war.

The Nasdaq Composite plummeted 3.69% to 15,940.08 early Friday, losing 20% from its all-time high reached in December. A close below this threshold would confirm a bear market. This trade conflict has rattled global financial markets, raising fears of an economic recession, with JP Morgan now predicting a 60% chance of a global downturn by year's end.

The Dow Jones Industrial Average and S&P 500 also saw considerable declines, reflecting investor anxiety over potential economic slowdowns. As traders brace for further volatility, focus shifts to upcoming Fed announcements for clues on interest rate trajectories.

(With inputs from agencies.)