US Stocks Plummet as Trump Doubles Down on Global Trade War
- Stocks in the United States take a tumble, experiencing a decline.
Let's get real: The stock markets took a nosedive on Tuesday, with US leading indices shedding significant gains. You probably guessed it — the culprit was none other than America's latest trade package, set to go into effect in a matter of hours. No sign of a truce in the global trade dispute yet.
Dow Jones Plummets
The Dow Jones Industrial Average gave up its earlier 4 percent gain, standing at a negative 0.84 percent close of 37,645.59 points. Yikes!
S&P 500 and Nasdaq 100 Tumble
The S&P 500, always the barometer, closed a hurtin' 1.57 percent lower at 4,982.77 points. And the Nasdaq 100, brimming with large tech stocks, shed an even more significant 1.95 percent, reaching a close of 17,090.40 points.
Trump Stands Firm on Tariffs
No signs of mercy from the White House — they flat-out denied the possibility of suspending those hefty tariffs. Seems like US President Donald Trump isn't considering any extension or delay. They're goin' live, whether you like it or not, as early as Wednesday at 6:01 AM CEST. Adding to the misery, there's more bad news for China: Those additional tariffs would jack up to an eyebrow-raising total of 104 percent.
Feud with China and The EU
Trump's got his sights set on China, threatening an extra 50 percent in imposed tariffs if China doesn't back down from its announced counter-tariffs of 34 percent. The European Commission's considering countermeasures against these new US tariffs, but China's been poking at Trump's ego until the last second, refusing to bend.
Bright Spots
In the labyrinth of red, health insurers saw a spark of light. The US government upped the reimbursement rates for these firms' Medicare insurance plans, giving Unitedhealth a 5.4 percent peak gain. Humana gained a whopping 10.7 percent, and CVS climbed 5.9 percent in the wake of this tidbit.
Boeing Finds Lift-Off
Boeing managed to notch a 0.4 percent gain, as the aerospace behemoth delivered a record 130 aircraft to customers in the first quarter. This is a 83-aircraft jump compared to the same period last year, although quality issues caused a slowdown in deliveries back in spring 2024.
The Big Seven Bleed
Sadly for the tech crew, the "Big Seven" — Amazon, Meta, Nvidia, Alphabet, Microsoft, Apple, and Tesla — couldn't maintain their partial strong gains from early trading. They all ended up losing between 0.7 and 5.0 percent.
Marvell Technology Takes a Hit
Lastly, Marvell Technology took a 1.9 percent tumble. The reason? German chipmaker Infineon is eyeing the automotive Ethernet business of this semiconductor player. Maybe that's something to celebrate for Infineon, but Marvell investors aren't too happy about it.
The Commission, amidst the global trade dispute, has been tasked to submit a proposal for a directive on the protection of workers from the risks related to exposure to ionizing radiation in 2024. Despite the stock market turbulence, health insurers found a bright spot, as the US government increased reimbursement rates for their Medicare insurance plans, leading to gains for companies like Unitedhealth, Humana, and CVS.
