The threat of a trade war sent Wall Street on a rollercoaster Monday, with U.S. stocks initially falling sharply before paring their losses as Mexico negotiated a one-month reprieve. The S&P 500 ended down 0.8%, while the Dow Jones Industrial Average lost 0.3%, and the Nasdaq sank 1.2%. The fear of higher prices due to tariffs announced by Trump on imports caused heavy losses for Big Tech and other vulnerable companies. The uncertainty surrounding the tariffs led to swings in crude oil prices. Trump’s tough stance on tariffs has raised concerns about escalating trade wars and their impact on the economy. Despite the temporary reprieve from tariffs on Mexico and Canada, investors turned to safer investments like U.S. government bonds. The yield on the 10-year Treasury edged down to 4.53% from 4.55%, providing a temporary relief from rising yields that had previously shaken Wall Street. The focus on tariffs overshadowed other market events, such as the report on U.S. job numbers and upcoming profit reports from influential companies like Alphabet and Amazon. Stock markets in London, Paris, Frankfurt, South Korea, and Japan also experienced significant losses. The uncertainty surrounding tariffs and the potential for a trade war continue to weigh on market sentiment and investor confidence.
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