Stocks plummet as Trump's trade war intensifies, sending Dow tumbling and S&P into correction.
Stocks took a tumble in the States today, with the S&P 500 dipping into correction territory – down a tough 10% from its peak in February – as ol' Donald Trump dropped a tariff bombshell on the European Union.
The Dow shed a whopping 500 points, the S&P 500 took a hit of 1.3%, and the Nasdaq Composite wasn't immune, plunging a significant 1.8%. If the S&P closes at these levels, we're staring at an official market correction.
Trump's not holding back, threatening to slap a jaw-dropping 200% tariff on booze imports from the EU. Remember, the bloc just slapped a 50% tariff on US spirits like the famous bourbon.
This story's still unfolding, so keep your eyes peeled for updates.
*Enrichment: The S&P 500 entering correction territory is a significant event in the stock market as it typically indicates a temporary market downturn. However, the market often recovers over time. The new tariffs on spirits could potentially escalate trade tensions between the US and EU, which could have broader implications for the economy and market.Enrichment: The tariff dispute between the US and EU is a long-standing issue that involves trade disagreements, protectionist policies, and political competition. Understanding the history and motivations behind these tariffs can provide context for future developments.
Investing in the business sector may have been a regrettable decision today, as the S&P 500 plunged due to the tariff bombshell dropped by Donald Trump, threatening to impose a staggering 200% tariff on EU beverages, such as imported spirits. Consequently, the Nasdaq Composite also fell by 1.8%, mirroring the broader market decline. Amidst this turmoil, the S&P 500 teetered on the brink of entering correction territory – a significant event – down 10%.
