Wall Street Nosedives Amid Trade War Turmoil

Wall Street experienced a significant downturn as the Nasdaq Composite confirmed a bear market and the Dow Jones Industrial Average entered a correction. Escalating global trade tensions, sparked by U.S. tariffs, fueled these losses. The market panic worsened with China announcing additional tariffs on U.S. goods.

In a striking downturn, Wall Street witnessed its worst two-day decline since the onset of the pandemic, as the Nasdaq Composite confirmed being in a bear market and the Dow Jones entered a correction. The escalation stemmed from President Trump's newly implemented tariffs, which sparked fears of an impending global recession.

The announcement of sweeping tariffs hit investor confidence hard, leading to massive sell-offs on the markets and a surge in the CBOE Volatility Index. Global reactions further exacerbated these fears, with China imposing additional tariffs in response, deepening concerns over economic fallout.

Trading volume soared to record-breaking levels as market turbulence intensified. Major indices concluded the week with significant losses, with JP Morgan raising the probability of a global recession. Central banks face tough decisions as rising inflation and slowing growth loom large due to trade tensions.

(With inputs from agencies.)