Us Markets Crash: Trump’s tariff bomb shakes Wall Street, NASDAQ 6% broken, Apple-Nike bad condition
New Delhi:
US President Donald Trump’s new tariff announcement shook the Wall Street on Thursday. At the beginning of trading, the market value of up to $ 2 trillion in the US stock market was cleared. Trump’s move has raised the possibility of Global Reciprocal Tariff War, which created an atmosphere of fear and nervousness among investors.
On the previous day i.e. Thursday, big indexes like S&P 500, Dow Jones and Nasdaq have been exposed. Dow Jones fell 1,700 points and now it has reached the correction zone, that is, it has fallen 10% from its previous high. S&P 500 saw 5% decline in 5% and NASDAQ by about 6%.
The most impact on tech and retail sector
Trump’s tariff has affected Tech and Retail sector the most. Apple shares can suffer a loss of more than 9%. The alone may suffer a loss of about $ 40 billion, as its products are manufactured in Asian countries. This means iPhone prices may increase and this will affect the company’s profits.
At the same time, Nike fell to 14%. PC brands like Dell and HP fell nearly 17%. While fashion brand shares like GAP fell to 20%. Shares of companies like Amazon, Walmart and Target also fell as they are dependent on countries like China for their products. Tariffs will increase their expenses and products can be expensive.
Banking and Auto sector also rolled
Large banks like JP Morgan Chase, Citigroup and Bank of America also fell as investors are afraid of the possibility of recession. Auto companies such as Ford, General Motors and Tesla also showed the effect of tariff and their shares were broken by 3-6%. Stellantis, which makes Jeep, has announced to stop production in some factories in Canada and Mexico.
Dollar and crypto also shocked
The dollar fell to below 102. American dollar fell to 2.6% against the euro, which is the biggest decline of 10 years. Bitcoin fell 4.5% and Ether 5.5% fell.
At the same time, the price of safe haven asset gold reached $ 3,167 an ounce, but later a little profit booking took place. At the same time, crude oil fell 6.9% to $ 66.74 because there is a fear of decreasing demand due to the possibility of recession.
What is Trump’s new tariff formula?
Trump announced on Wednesday that the US will now impose at least 10% tariffs on all imports. This rate can go up to 25% on products coming from some countries like China, Vietnam, Indonesia and EU. China has been charged up to 54% tariffs while Vietnam has been charged 46%, Cambodia 49% and Indonesia 32% tariffs.
Earthquake in markets around the world
After Trump’s tariff announcement, the US as well as Japan, Europe and other global markets also declined. Tokyo’s Nikkei dropped more than 4% while European markets like Paris and Frankfurt declined by more than 3%. At the same time, the impact of getting global market crash can be seen on the Indian market today.