Wall Street: US markets open to sharp losses as Trump's new tariffs spark recession fears and market turmoil
US stock markets opened on Monday afternoon, amid heightened investor concerns following the implementation of new tariffs by President Donald Trump.
The recently imposed tariffs, ranging from 10% to 50% on imported goods, have sparked fears of a global trade war and potential recession. This has led to significant market volatility, with the S&P 500 and Nasdaq experiencing their worst drops in years.
Investors are closely monitoring the situation as markets react to these developments. The administration's tariff policies have drawn criticism from financial leaders, including JPMorgan CEO Jamie Dimon, who warned of possible inflation and reduced investment.
According to The Guardian, the S&P 500 fell by 3.4% at the opening bell, pushing it into bear market territory, defined as a decline of more than 20% from its record high. The Dow Jones Industrial Average dropped by 1,191 points (3.1%) to 37,123, while the tech-heavy Nasdaq fell even further, down 3.9%.
The slump comes amid growing fears of a US recession, with Goldman Sachs among the institutions warning that the ongoing trade war is increasing economic risks. President Trump has shown no signs of reversing course on the tariffs.
Bloomberg reports that Wall Street has now lost around 13% of its value since last Thursday, marking the third-worst three-day performance in history, after the early Covid-19 crash in March 2020 and the 2008 financial crisis.