Global Economic Jolt: Stock Market Mayhem

The global stock market has experienced a historic collapse as over $10 trillion is wiped out due to U.S. tariffs. The S&P 500 saw unprecedented drops, affecting household wealth and consumer spending. Banks, oil, and currencies also faced significant declines, signaling a potential global economic downturn.

The global stock market is reeling as a historic rout wipes more than $10 trillion off major markets worldwide. Concerns are growing over economic damage stemming from U.S. President Donald Trump's tariffs, marking a downturn of a magnitude not seen since the COVID-19 crisis in 2020.

The S&P 500 index fell over 10% in just two trading sessions last week, marking its worst performance since World War II. This dramatic decline rivals previous financial calamities like the 1987 stock market crash, the 2008 financial crisis, and the 2020 COVID-19 shock. Investment experts like Kevin Thozet predict further declines in U.S. stocks, which could impede consumer spending and GDP growth.

Globally, banking stocks have plummeted, with European and Japanese stocks shedding significant value. Oil prices have also fallen sharply, and currencies like the Australian dollar and Vietnamese dong have depreciated due to international trade tensions and tariffs. Several frontier markets face increased borrowing costs, posing challenges to their economic stability.

(With inputs from agencies.)