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New tariffs have triggered a dramatic market downturn, with US stock futures plummeting and Asian markets experiencing significant losses. The S&P 500 is teetering on a bear market, fueled by fears of a global recession stemming from the increased trade tensions. Oil prices have fallen sharply, and even Bitcoin has experienced declines. Analysts predict continued market volatility as investors grapple with the uncertainty and potential economic consequences of the escalating trade war.
Following his announcement of widespread tariffs, President Trump, while vacationing at his Florida properties, maintained his trade policies would remain unchanged. Despite criticism from Democrats who described him as being in a “billionaire bubble,” and warnings from Federal Reserve Chair Jerome Powell about increased inflation, Trump defended his actions, claiming they are a necessary step to boost the U.S. economy. He cited a recent jobs report as evidence of success and engaged in negotiations with foreign leaders, aiming to secure trade deals. Trump also insisted on maintaining his course of action despite significant market volatility.
President Trump’s sweeping tariffs triggered a historic stock market plunge, with the Dow Jones losing 2,231 points on Friday—the worst single-day drop since 2020. This two-day market collapse resulted in a record-breaking $6.4 trillion in losses, fueling recession fears among experts who warn of long-term economic damage. While Trump and some officials downplayed the impact, analysts predict a significant increase in inflation and decreased growth, with some even predicting a 60% chance of global recession by 2025. The sell-off reflects widespread investor concern over the tariffs’ potential to stifle economic growth.
President Trump’s new tariffs and a subsequent drop in global oil prices triggered Russia’s worst stock market week in over two years, with the MOEX Russia Index falling 8.05%. The Moscow Exchange lost $23.7 billion in market capitalization over two days, impacting major companies like Sberbank, Gazprom, and Rosneft. This downturn follows a global market decline, fueled by China’s retaliatory tariffs and analysts’ increased prediction of a global recession. Russia’s heavy reliance on commodity exports makes it particularly vulnerable to these global economic shifts.
John Q. Hosedrinker