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Trump-Zölle plunge Wall Street into historical losses
The Trump-Zölle ensure panic at the markets. The Wall Street has been the greatest losses since the Corona crisis since the President’s announcement-there is a risk of recession?
US President Donald Trump’s new tariffs triggered a massive sale on Wall Street. The three most important indices suffered their biggest daily losses since Corona pandemic on Thursday.
The Dow Jones fell four percent to 40,546 points, while the technology -heavy Nasdaq released six percent to 16,551 points. The S&P 500 lost 4.8 percent and closed at just under 5,397 points. The slump was particularly drastic for the Nasdaq, which last recorded similar declines in March 2020, while Dow and S&P had recently fallen so much in June of the same year.
Which states meet the tariffs the most
Syria: 41 percent
After years of war, a good 24 million people still live in Syria. The country primarily exports animal and herbal fats and oils, fruit and nuts as well as vegetables and plants – in the USA this is now 41 percent more expensive
© Omar Sanadiki / AP / dpa
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Investors fear that the new tariffs could trigger a comprehensive trade war that plunges the global economy into a recession. Trump announced on Wednesday after the IPO to raise a basic customs set of ten percent on all imports and higher tariffs for numerous countries. The EU is particularly affected with 20 percent and China with 34 percent.
Because of Trump tariffs: fear of a trade war
Sam Stovall, chief investment strategist at CFRA Research, said: “The announcement was worse than expected. The share prices fall due to the expected inflationary effects.” If there are no negotiations, retaliatory duties threaten that could further tighten the situation.
On Thursday, investors separated across all industries from their shares. Apple shares lost 9.2 percent because around 90 percent of the company’s production are located in China-one of the main targets of tariffs. Meta also recorded a decline of almost nine percent.
Wall Street: Technology and Financial sector under pressure
Manufacturers of PCs and AI servers are also severely affected. According to JP Morgan calculations, hardware manufacturers have to increase their prices by average by average five percent to compensate for margin losses. Shares from Dell and HP crashed around 19 and 14.7 percent. Large banks such as JPMorgan (-6.9 percent) and Citigroup (-12.1 percent) were also under pressure because they are sensitive to economic risks.
The fear of a global economic slump also pressed the raw material markets. The North Sea variety Brent took over 6.7 percent to $ 69.92 per barrel, while US oil fell seven percent to $ 66.68. Experts like Vivek Dhar from the Commonwealth Bank of Australia see the demand from Asian emerging countries particularly at risk – these countries are severely affected by the tariffs.
Gold, on the other hand, benefited as a safe harbor: the price of the precious metal temporarily increased to a new all -time high of $ 3,167.57 per troy ounce, but fell slightly back at the conclusion of the trade.
Reuters
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Source: Stern
