US Stock Market Hit as Donald Trump Says ‘No Room Left to Avert’ Canada, Mexico Tariffs | World News
Market Reaction: A Look at the Impact of Trump’s Decision on Global Markets
Donald Trump’s recent statement on tariffs on Canada and Mexico has sent shockwaves through global markets, with the US stock market experiencing its biggest daily percentage drop since December. In this article, we’ll explore the impact of Trump’s decision on global markets and the key factors that contributed to the volatility.
The Stock Market Reacts: A Day of Woes
The US stock market opened the week with a dismal performance, with the S&P 500 and Dow Jones Industrial Average falling 1.76% and 1.48%, respectively. The Nasdaq composite also plunged 2.64%. These losses marked the largest daily decline for the S&P 500 and Dow Jones since December 18, 2020.
Global Markets in a Tizzy
The news also sent shockwaves through global markets, with the Canadian and Mexican currencies, the loonie and peso, respectively, hit one-month lows. The euro, on the other hand, strengthened as European leaders agreed to draft a peace plan to present to the United States in response to Ukrainian President Volodymyr Zelenskiy’s clash with Trump in the Oval Office.
What’s Behind the Decision?
Donald Trump reiterated that there was "no room left" for a deal to avert the tariffs on Canada and Mexico, which are set to take effect on Tuesday. He also mentioned that reciprocal tariffs will start on April 2, as scheduled. This decision marks a significant shift from the earlier agreements reached between the countries, which were supposed to suspend the tariffs.
A Rude Awakening for Global Markets
The news has left global markets reeling, with investors scrambling to adjust to the new reality. The uncertainty surrounding the tariffs has sent ripples through various asset classes, with oil prices falling about 2% to a 12-week low. Spot gold gained 1.1%, while US long-dated Treasury yields fell.
What’s Next?
The coming days and weeks will be crucial in determining the trajectory of global markets. With the tariffs set to take effect, investors will be closely watching for any signs of a last-minute deal or a resolution to the trade tensions. In the meantime, the market is bracing for a possible escalation in the trade war.
Conclusion
The US stock market’s performance in response to Donald Trump’s decision on tariffs sets the stage for a potentially volatile trading week ahead. As investors navigate the uncertain terrain, it’s essential to stay informed and adapt to the shifting landscape. With this article, we’ve provided a comprehensive overview of the market reaction and key factors driving the volatility. Stay tuned for further updates as the situation unfolds.
Further Reading:
- [How will the tariffs affect your investments?](link to article)
- [What’s driving the market volatility?](link to article)
- [Will the Fed cut rates in response to the tariffs?](link to article)
Related News:
- [Canada and Mexico in talks to address tariffs](link to article)
- [US markets expect rate cut ahead of inflation](link to article)
- [Global markets forecast a mixed bag for 2025](link to article)
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