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Friday, 04 April 2025
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Trillion-Dollar Losses for U.S. Stocks Amidst Tariff Imposition
الأسهم الأمريكية

U.S. stocks suffered significant losses at the opening of trading on Thursday, sharply declining amid concerns about the impact of the comprehensive tariffs imposed by President Donald Trump on the American economy.

The S&P 500 index fell by 3.4% during early trading, while the Nasdaq Composite dropped by 4.6%, affected by an 8% decline in Apple’s share price. Bloomberg reported that U.S. stocks lost approximately two trillion dollars in the first trading session following the announcement of the tariff decision by the U.S. government.

This sharp decline came as investors grew concerned about escalating trade tensions and their negative effects on the global economy, leading to widespread selling in U.S. stock markets. At the same time, the dollar declined by 2.4% against a basket of major currencies, marking its largest daily drop since 2015.

Oil prices also fell, with Brent crude, the global benchmark, dropping by 6% to $70.42 per barrel, while West Texas Intermediate crude fell by 6.5% to $67.03 per barrel.

Francesco Pesole, a currency strategy expert at ING Bank, commented, “What we are witnessing is a loss of confidence in dollar-denominated assets in general,” referring to the implications of Trump’s economic policies. A report published by the Financial Times noted that investors see this as a vote of no confidence in the current administration.

These repercussions follow Trump’s announcement of a 10% tax on most U.S. imports starting April 5, which covers dozens of countries, including China, which will be subject to further tariffs beginning on April 9.

European stocks were also affected, with the Stoxx Europe 600 index falling by 2.3% due to a broad sell-off of export-dependent company stocks.

Donald Trump wrote on his platform "Truth Social" on Thursday: “The operation is over! The patient survived and is recovering.” He clarified that forecasts suggest the U.S. economy will be “stronger, bigger, better, and more resilient than ever.”

For her part, White House spokesperson Caroline Levitt attempted to calm the markets, encouraging investors to trust President Trump, emphasizing that the tariffs would ensure the United States is not cheated by foreign countries.

However, the current economic situation continues to raise concerns among investors, fearing that the tariffs could lead to slower economic growth and increased inflation, which further exacerbated the significant losses witnessed on Wall Street.

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