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US President Donald Trump is seen on a TV display screen under a show exhibiting the German Inventory Market Index DAX on the inventory alternate in Frankfurt, Germany, on April 3, 2025. (Picture: AFP)
NEW YORK, United States (AFP) — The sell-off in Wall Avenue shares deepened in mid-morning buying and selling Thursday, with the S&P 500 dropping greater than 4 p.c following US President Donald Trump’s sweeping tariff announcement.
Trump’s broadly crafted new levies battered main names in banking, know-how, attire and most different areas. Among the many S&P 500’s 11 sectors, solely client staples was solidly in optimistic territory, with the opposite 10 within the pink or almost flat.
Close to 1510 GMT, the S&P 500 stood at 5,420.15, down 4.4 per cent.
The Dow Jones Industrial Common dropped 3.7 p.c to 40,644.74, whereas the tech-rich Nasdaq Composite Index plunged 5.7 per cent to 16,591.55.
The rout follows Trump’s “Liberation Day” tariff announcement by which he unveiled a broad swath of latest levies affecting all US buying and selling companions.
“Clearly what was introduced was near the worst-case state of affairs and markets weren’t ready for that and are reacting accordingly,” stated Angelo Kourkafas, senior funding strategist at Edward Jones.
Adam Sarhan of fifty Park Investments stated the tariffs will scale back company earnings and will reignite inflation and immediate counter tariffs from US commerce companions.
“Right here you could have an amazing quantity of uncertainty… and that’s why the market is heading for a bear market,” stated Sarhan, who additionally thinks a US recession is probably going at this level.
“The market is a forward-looking mechanism,” he stated. “You sometimes have recessions after a bear market.”
However Sarhan believes in Trump’s plan, viewing US commerce and funds deficits as unsustainable.
Particularly hard-hit sectors included attire, the place Nike, Macy’s and Hole all suffered double-digit drops following giant new levies on China, Malaysia and different nations which might be residence to textile infrastructure.
Apple, which depends closely on Chinese language producers for its merchandise, was one other massive loser, sinking 8.8 per cent. Amazon fell 8.2 per cent, whereas Nvidia misplaced 6.8 per cent.
Jason Schenker of Status Economics stated in a observe that the Trump administration might later drop the levies after negotiations on commerce or different political priorities.
“We see the Trump administration’s insurance policies as a manifestation of outcome-focused financial Realpolitik slightly than process-focused diplomacy,” Schenker stated.
“Recession and stagflation dangers are rising with tariff uncertainty,” he added.
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