Sell-off worsens for markets after China retaliates against U.S.
By STAN CHOE, Associated Press Business Writer
Stock markets around the globe are plummeting on Friday following China’s decision to match President Donald Trump’s increase in tariffs, escalating the trade war. Even a positive report on the U.S. job market was unable to halt the downward trend.
Early trading saw the S&P 500 down 2.9%, the Dow Jones Industrial Average dropping 2.6%, and the Nasdaq composite falling 2.9%. This comes after the worst day for the S&P 500 since the onset of the COVID pandemic in 2020.
The repercussions of the trade war are being felt across financial markets. European stocks experienced significant losses, with indexes declining by about 4%. The price of crude oil hit its lowest point since 2021, and other essential components for growth like copper also saw prices decrease sharply due to concerns about the global economy weakening.
Following China’s retaliatory tariffs on U.S. imports, markets worldwide experienced accelerated losses. The United States and China, being the two largest economies, are at the center of this trade conflict.
Although the U.S. jobs report showed better-than-expected hiring numbers, indicating a relatively stable job market, the fear in financial markets is focused on future implications. There is apprehension about a potential global recession, which could lead to further declines in stock prices.
The duration of Trump’s tariffs and the response from other countries will play a crucial role in determining the outcome. Some remain hopeful that negotiations could lead to a reduction in tariffs, while others believe a recession is imminent.
Amid the turmoil, investors are closely monitoring the situation, hoping for a swift resolution through negotiations. The speed of recovery will hinge on the efficiency of these negotiations.
Stocks of companies heavily involved in China are among the hardest hit, with GE Healthcare, DuPont, and United Airlines experiencing significant losses. The bond market is also feeling the impact, with Treasury yields falling sharply.
International stock markets are also facing declines, with Germany’s DAX, France’s CAC 40, and Japan’s Nikkei 225 all experiencing losses.
AP Writers Jiang Junzhe, Huizhong Wu, and Matt Ott contributed.
Originally Published:
