Stay informed with free updates
Simply sign up at The Capital of the SH.BA Myft Digest – delivered directly to your box.
The future of the US stock index fell sharply on Sunday after the Trump administration showed that comprehensive tariffs would be held in the country, despite the fear that they could cause a global economic recession.
Contracts that follow the chip blue-chip s & p 500 fell 3.8 percent and those for Nasdaq 100 heavy Nasdaq Slid 4.6 percent. Commercial activity is usually easy at the beginning of Asian morning, which can worsen instability.
The declines come after more than 5TN was deleted from the S&P 500 on Friday at the end of its worst week since the beginning of the pandemia in 2020. China announced a retaliating tasks on Friday of 34 percent.
The goods also suffered major losses in early Sunday trading at night, with West Texas Intermediate, US Standard, falling 3.4 percent to $ 59.90 per barrel – under the price needed by most clay producers to break even. International marker Brent fell 3.1 percent to $ 63.53.
Copper, widely seen as a representative for the global economy due to its industrial uses, fell more than 5 percent to $ 4.14 pound in the US trade.
Trump reaffirmed his commitment to the fees on Sunday.
“We have massive financial deficits with China, the European Union and many others. The only way this problem can be cured is with tariffs, which are now bringing tens of billions of dollars to the SH.BA they are already in force, and a beautiful thing to see,” he wrote on social truth.
Asked later about market decline, Trump told reporters that “sometimes you have to take medicine to fix something”.
Previously, Treasury Secretary Scott Bessent rejected the reaction of the “short -term” market to the president’s aggressive tariffs, telling NBC that the White House will “hold the course”.
“Our trade partners have benefited from us,” Bessent said. Asked if Trump’s fees were negotiable, he said, “We will have to see what they offer (other countries) and if it is reliable.”
His comments followed a warning from Federal Reserve Chairman Jay Powell that tariffs would arouse “higher inflation and slower growth”.
JPMORGAN economists said Friday that they expected the world’s largest economy to contract 0.3 percent this year “under the weight of tariffs”. They had previously predicted US growth of 1.3 percent.
Some investors disturb the shares will continue to slip until Trump shows that his tariffs will be less aggressive.
Activist Investor Bill Ackman, who loud Trump during the election campaign, posted on X that “massive and unprofessional tariffs” risked “destroying our country as a trade partner, as a country to do business, and as a market to invest capital”.
He asked Trump to call “time out” on Monday.
“Otherwise, we are heading to a self-induced economic nuclear winter, and we must start to hunt,” he wrote.
Dec Mullarkey, Managing Director at SLC Management, said: “Uncertainty is the big word now and we are not even the uncertainty of peak points.”
Banks and shares of technology were among the most hit last week as the dollar drowned against other main currencies, and treasury yields, which move in the opposite prices, collapsed while investors rushed to perceived safe housing assets. European and Asian stock markets also fell significantly, while goods including copper and oil feared a global trade war.
Friday marked the fifth largest session of “Net Active Network” by investors since 2010, according to Morgan Stanley, with short capital funds responsible for 80 percent of net sales.
The fall of S&P 500 more than 10 percent of Thursday and Friday is only the fourth time in the last 85 years – after the fall of 1987, in 2008 during the financial crisis and early 2020 – that the index has fallen so far, so fast, according to Deutsche Bank.
