US stocks fell again on Tuesday after a day of sharp swings on Wall Street.
The market started strong, but optimism faded after former President Donald Trump announced a 104% tariff on all Chinese imports, set to begin Wednesday.
The S&P 500, which was up by as much as 4.1% in the morning, reversed course and ended the day down 1.6%. The Dow Jones also gave up a 1,460-point gain and closed 320 points lower, while the Nasdaq dropped 2.1%.
This unexpected shift came after global markets had opened the day with gains—Tokyo rose 6%, Paris 2.5%, and Shanghai 1.6%. But market analysts had warned earlier that volatility might continue due to uncertainty around trade policies.
At the center of investor concerns is how long the new tariffs might last.
Read also,
Experts say if the high tariffs remain in place, they could raise prices for American consumers and slow the economy. On the other hand, if a quick deal is reached, the negative effects could be reduced.
Trump said recent talks with South Korea showed progress and hinted at a potential agreement, calling it a "great DEAL." He added that other countries are also showing interest in negotiating with the US.
Japan's stock market was boosted after its Prime Minister appointed a new trade negotiator, reportedly in coordination with the US.
Meanwhile, China responded firmly, promising to take action and calling the new tariff measures unfair. According to the White House, the tariff will go into effect at 12:01 AM, with no exemptions.
The US trade representative also confirmed that around 50 countries have reached out to begin trade discussions, suggesting that negotiations are still possible.
For now, investors remain cautious, waiting to see whether the situation will escalate or cool down in the coming days.
No comments:
Post a Comment