Trade War Tug-of-War Sends Wall Street into Turmoil

Wall Street faced a significant downturn as China imposed fresh tariffs on all U.S. goods, escalating a global trade war. The Nasdaq fell sharply, inching toward a bear market. Concerns about a recession grow as tariffs affect global financial markets, forcing investors to seek safer assets.

Wall Street experienced another sharp decline as China announced fresh tariffs on all U.S. goods, intensifying a global trade war initiated by the Trump administration. The move pushed the Nasdaq Composite closer to a bear market and triggered widespread concern about an impending recession.

The tariffs, announced by China's finance ministry, will impose an additional 34% on all U.S. goods starting April 10. This development follows President Trump's decision to elevate tariff barriers to historic levels, sending shockwaves across global financial markets.

Investor sentiment has been hit hard, with a significant shift away from riskier assets like stocks toward safer options such as government bonds and gold. Federal Reserve Chair Jerome Powell warned of potential higher inflation and slower growth, while U.S. bank stocks continued to drop amidst fears of an economic slowdown.

(With inputs from agencies.)