Trump's tariffs trigger $1.7 trillion wipeout on Wall Street
At the beginning of Thursday's session, $1.7 trillion vanished from Wall Street. According to BBC, the sharp declines in global markets were a reaction to the so-called reciprocal tariffs introduced by U.S. President Donald Trump.
Thursday's session on Wall Street commenced with steep declines. BBC reports that the Dow Jones Industrial Average dropped by 2.7%, the S&P 500 fell by 3.1%, and the Nasdaq Composite decreased by 4.2%.
Shares were primarily sold off in retail networks and corporations that had previously thrived under globalization. Apple shares fell by 8%, Tesla by 4%, Nike by 12%, and Dollar Tree by 11%, as reported in the daily.
Impact on currencies and commodities
The dollar weakened against major world currencies. "In the afternoon, 1 euro was valued at $1.106, and 1 dollar at 3.79 zloty. The yield on ten-year U.S. bonds fell to 4.05%. The price of gold reached a record high of nearly $3,160, only to later drop to around $3,100. (...) WTI crude oil, on the other hand, dropped by nearly 6%, with its price falling below $68 per barrel," reports BBC.
The sell-off was triggered by the tariffs announced by Donald Trump after markets closed on Wednesday. The tariffs are on goods from all countries, ranging from a minimum of 10% to as much as 49%.
For the U.S.'s largest trading partners, such as the EU and China, the rates are expected to be 20%, while for China, they will be 34%. High tariffs will also apply to products from Asian countries like South Korea, Japan, India, Vietnam, and Bangladesh.
