Wall Street suffered heavy losses on Wednesday as tariff war sparked fears of global recession. While the S&P 500 suffered highest single day fall since 2020, the blue-chip Dow Jones Industrial Average lost 1,679.39 points or 3.98% to close at 40545.93 and the tech-heavy Nasdaq Composite dropped 5.97%, 1050.44 points ending at 16550.61.
While Multinational companies bore the brunt, Retailers dependent on imports were also hit hard.
In his bid to rejuvenate American industries and reduce the national debt, Trump has been particularly wary of unfair trade practices and currency manipulation, that he has been asserting to justify these measures.
The U.S. tariffs announcement was more severe than anticipated, more so for Europe and China, with rates at 20% and ~54%. There is no denying that although there could be room for negotiation high tariffs and resulting uncertainty increase the risk of a recession.
Marking the fear, Volatility Index, VIX, rose to above 30, the highest since August 5 last year.
(Source: Reuters, TradingView)
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