Trump Tariffs Spark Market Uncertainty and Global Growth Concerns
The financial markets are experiencing heightened volatility following the announcement of new tariffs by former President Donald Trump. Futures dipped as investors reacted to the potential economic repercussions of these tariffs, which are set to take effect in 2025. The move has reignited fears of a trade war, reminiscent of the tensions during Trump's previous term.
Analysts from Reuters, CNBC, Bloomberg, and NBC News have reported a significant downturn in stock market indices, with many investors pulling out of equities in anticipation of increased costs and disrupted supply chains. The proposed tariffs are seen as a direct challenge to global trade norms and have raised concerns about slowing global growth.
The uncertainty has led to a broad sell-off, affecting not only U.S. markets but also international exchanges. Experts are now closely monitoring the situation, with some suggesting that these tariffs could lead to retaliatory measures from other countries, further complicating the global economic landscape.
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How did markets react to Trump?
Global markets reacted sharply and swiftly after Trump revealed his much-anticipated tariff plans today, with investors fleeing U.S. stock indexes and stocks of companies that rely on global supply chains plummeting. The ETF (exchange-traded fund) that tracks the S&P 500 plunged more than 2.7%.
How will markets react to tariffs?
Market reaction: Stocks had closed higher ahead of Trump's tariff announcement, but began to slide as Trump revealed his administration's plan for rolling out tariffs. Dow futures tumbled 256 points, or 0.61%. S&P 500 futures slid 1.69%. Futures tied to the Nasdaq 100 fell 2.54%.
Why did the market drop after hours?
The market's after-hours decline can be attributed to a divergence between what investors were expecting versus President Donald Trump's tariff policy announcement earlier this afternoon, according to Art Hogan, chief market strategist at B. Riley Wealth Management.
When does the stock market close today?
Core Trading Session: 9:30 a.m. to 4:00 p.m. ET.
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