It was another wild ride on Wall Street, with stocks shaking sharply on Monday as economists rose The Ghost of the US Recession And President Trump threatened to escalate us. Tariffs on China.
President Trump temporarily rebeled against false reports that he was considering freezing 90-day tariffs in all countries except China, and returned to the roller coaster in the afternoon.
“Can things get worse? Of course they can,” said Nate Thoof, senior portfolio manager at Manulife Investment Management. “We’re not entirely clear, but when you have this type of volatility in the market, of course you’ll come and go in the market,” he said in the market.
The S&P 500 finished a modest 12 points (0.2%) with 5,062. The Dow Jones industrial average fell 349 points (0.9%), while Nasdaq’s composites made a small profit, rising 15 points to close at 0.1%.
CBS News 24/7 answers questions about customs on the special broadcast on Wednesday at 6pm. Download the CBS News app on your mobile phone or connected TV and watch it live.
“There’s more noise than today’s news. Investors should avoid trying to tie all the mites to the headlines of the (S&P 500),” Adam Crisafulli, head of Vital Knowlede, said in the report. “In the near future, the recent slowdown rate has been unsustainable and stocks are vulnerable to sharp rebounds.”
Stocks are shaking in afternoon trading as Trump escalates threats to China, saying the US will apply an additional 50% tariff on imports from China if Asian countries do not withdraw plans to impose retaliation 34% import fee About American products.
“A country that retaliates against the US by issuing additional tariffs beyond existing long-term tariff abuse will meet immediately with new, substantially higher tariffs beyond what was originally set,” Trump told the post.
Recession concerns
Investors say it is likely that they will hit Trump’s tariffs and that they will likely clash with US economic growth and drive inflation. Goldman Sachs Economist cited the tax barrage Monday. Recession to 45%.
“The combination of messages from the administration showing greater tariffs, increased policy uncertainty, reduced business and consumer confidence, and a magnitude of willingness to tolerate short-term economic weaknesses in policy pursuits increases the risk of a decline,” Goldman analysts said in the report.
Shares plummeted last week after Trump announced his 10% global obligation on all US imports and “mutual” tariffs in nearly 90 countries on April 2. The new trade measures sent the market to tailspin, with the S&P 500 and NASDAQ recording their biggest two-day decline since March 2020.
Foreign stock markets also suffered a sharp loss on Monday, continuing skids since last week. Hong Kong’s Hangsen has surpassed 13.2%. It is the sharpest decline since the 1997 Asian financial crisis, with Taiwan’s Tai falling 9.7%, the biggest loss on record. Tokyo’s Nikkei 225 index fell 7.8%, Shanghai Composite Index fell 7.3%, Korea’s Kospi fell 5.6%, and Australia’s S&P/ASX 200 fell 4.2%.
In Europe, Germany’s DAX index lost 4.8%, Paris’ CAC 40 lost 4.8%, and UK’s FTSE 100 lost 4.4%.
“The short-term future of stock prices is heavily dependent on Donald Trump’s whim,” Thomas Matthews, head of the Asia-Pacific markets for Capital Economics, said in a note to investors. “If he blinks in the face of market movements or decides he has received sufficient concessions, he can lift some tariffs and emotions may change very quickly.”
I contributed to this report.
