NEW YORK: Global investors grappled on Thursday with rising chances of an economic downturn and a sprawling trade war, as they scrambled for safe-haven assets to buffer against fallout from U.S. President Donald Trump’s sweeping tariffs.
The announcement of new tariffs by former President Donald Trump has sent shockwaves through the US stock market, resulting in its worst decline in five years, according to US media reports. The NASDAQ plummeted by 6%, while the S&P 500 fell by 5%. The Dow Jones experienced a staggering drop of 1,679 points, further exacerbating concerns among investors.
Experts are now warning that the likelihood of a new recession in the US and globally has increased dramatically, with JP Morgan raising the odds of a recession to 60%. Fear is mounting that the ripple effects of the tariffs could trigger economic slowdowns, potentially plunging global financial markets into further turmoil.
As a result, the financial landscape is under severe pressure, and the uncertainty surrounding the tariffs has left investors scrambling for stability. In an effort to mitigate the damage, the White House has released a list of hundreds of products that will be exempt from the tariffs, though many remain concerned that these moves may not be enough to reverse the downward trend.
Global markets are also feeling the strain, as the impacts of the US tariffs are felt worldwide, sparking a wave of anxiety among businesses and financial institutions. With trade tensions continuing to escalate, the future of the global economy remains uncertain, and investors are bracing for what comes next.
