Stocks Plummeting Amidst Global Tariff Fear: Wall Street in Turmoil
Wall Street Slump Continues: S&P Drops Below 5,000 Markers
Investors on Wall Street find themselves treading on edge, as the US-China trade dispute takes a turn for the worse. With tariffs looming, indices are experiencing a rollercoaster ride and slipping into the red.
Recent news about US trade policy is causing a stir. By the end of trading, the Dow Jones Industrial Average dropped 0.8%, settling at 37,645 points. The Nasdaq, a tech-heavy index, fell 2.1% to 15,267 points; meanwhile, the S&P 500, a broad-based index, took a 1.6% hit, closing at 4,982 points – marking its first close below 5,000 points in nearly a year.
Trading was dicey due to US trade policy. At the beginning, indices gained between 3.8% and 4.6% after losing more than 10% each during the preceding three trading days. However, optimism about concessions from the US faded throughout the trading day, sending the indices tumbling into the red.
A representative from the US presidential administration revealed that additional tariffs on Chinese products will take effect at midnight (US Eastern Time). Starting Wednesday, many other countries will also face additional tariffs, although not as high. For US imports to China, there will be at least a 104% surcharge, with some products facing even steeper tariffs[1]. Initially, the Chinese government had allowed the deadline set by US President Donald Trump for the withdrawal of Chinese counter-tariffs to pass. "The new administration in Washington is relentlessly pursuing its goal of upending the current global trade order, without regard for the consequences," noted Christian Henke, an analyst at broker IG[2].
Oil Prices Faltering Under Recession Threat
The dismal outlook for trade sent oil prices plummeting. Both North Sea Brent crude and US WTI crude shed nearly four percent, hitting $61.72 and $58.38 per barrel (159 liters) respectively[3]. "The scenario is fueling fears of a global recession, and the concern that energy demand may significantly decrease," stated Alex Hodes, chief strategist at financial services firm StoneX.
Investors still hope representatives of various countries will try to reach an agreement with the US. Almost 70 countries have reportedly pursued negotiations over the threatened import tariffs, according to the US presidential administration[4]. Agreements could materialize if they help reduce the US trade deficit and benefit American workers. These talks would potentially involve the military presence of the US in those countries[5]. However, Trump expects the tariffs to be implemented as planned on Wednesday.
Among individual stocks, Broadcom stood out with a gain of 1.2%. The California-based company has plans to repurchase shares worth $10 billion. Boeing's shares also rose by 0.4%. The Virginia-based aircraft manufacturer delivered 41 aircraft in March, a 41% increase from March 2024[6].
Harley-Davidson captured the attention of investors as well. CEO Jochen Zeitz has announced plans to step down from the US motorcycle manufacturer this year. The manager, who turned 62 on Sunday, had already stated in 2024 that 2025 would be his last year at Harley-Davidson. However, he is willing to remain in office until a successor is found. Shares in Harley-Davidson concluded the day over eight percent lower[7].
As the situation unfolds, stay tuned for updates on stock market news.
[1] tariffs on key exports like its aircraft[2] fears of negative consequences on global trade[3] investors wary of global economic downturn and reduced demand for energy[4] various countries seeking negotiations to avoid import tariffs[5] potential implications for the military presence of the US in negotiating countries[6] Boeing achieving a significant increase in aircraft delivery[7] Harley-Davidson CEO Jochen Zeitz announcing his departure and shares falling as a result.
- Investors are hoping that representatives from different countries will negotiate agreements with the US to possibly prevent the implementation of additional tariffs, as these could potentially lead to a global recession and a decrease in energy demand.
- The Nasdaq, S&P 500, and Dow Jones Industrial Average, which are key indicators of employment and economic health, have all seen declines as a result of the US-China trade dispute and the looming tariffs.
- The community policy and employment policy of various countries could be significantly impacted if military presence becomes a factor in negotiations to avoid import tariffs, as suggested by the US presidential administration.
