Market Turmoil Amid Trade War Escalation: President Trump is calling it a period of transition. Many investors perhaps seeing something more concerning as U.S. markets extended their post-election losses today. The week started with another major sell-off.
The Dow losing nearly 900 points, shedding 2% of its value. The Nasdaq tumbling 4%, its worst day since 2022. The S&P 500 suffering its worst one-day drop since December.
The market tumble getting a shove by the uncertainty and impact of Trump tariffs and the trade war they have triggered. But it’s what the president didn’t say when asked about the risk of a recession that is fueling much of the anxiety we’re seeing tonight, along with worries over the pace of economic growth.
It was the worst day for stocks this year. It’s been quite a roller coaster ride with the S&P 500 losing over 7% since President Trump’s first full day in office.
The sell-off accelerated as the White House escalated its trade war with Mexico, Canada, and China, underscoring investors’ concern over tariffs dragging down the U.S. economy.
The brutal day on Wall Street not aided by the president’s remarks in which he declined to rule out a recession as a possible side effect of his tariff negotiations.
It’s worth pointing out the economy is not showing signs of a recession at the moment with unemployment near multidecade lows.
The trade war stoking some of these worries in the market entered new territory today with fresh tariffs from Canada and China. Targeting the U.S. Kelly O’Donnell now with that story.
Reporter: Tariff turmoil. The president’s trade war churning volatile markets and provoking countermeasures from adversaries and friends, including Canada’s next prime minister, Mark Carney.
But uncertainty renews anxiety. President Trump did not appear on camera today. That’s rare, but he did weigh in on the risks of recession, notably not ruling it out in a Fox News interview that aired Sunday.
More from Canada. The province of Ontario hiking energy costs with a 25% tax on electricity exported to more than 1.5 million American homes and businesses.
A new economic punch from China, imposing 15% tariffs hitting the heartland: chicken, wheat, corn, and cotton. And 10% on pork, beef, produce, dairy, and soybeans.
Farmer Josh Gackle sells soybeans from his North Dakota farm, part of $13 billion in U.S. soybean exports to China. It would be difficult for U.S. farms to try to get through some type of long-term trade war.
Source: raialkhalij + aljazeera