Wall Street experienced significant declines as skepticism over American investments surged, primarily attributed to President Trump's trade war and criticism of the Federal Reserve. The S&P 500 fell 2.4%, marking a 16% drop from its peak just two months prior, while the Dow Jones plunged by 971 points. Unusually, U.S. Treasury bonds and the dollar also dropped in tandem, indicating a loss of confidence in U.S. assets. Investors are increasingly concerned that Trump's approach to trade and tariffs may lead to economic recession, especially after unsuccessful talks with Japan.
The S&P 500 sank 2.4% as skepticism around U.S. investments grew, driven by Trump's trade war and criticisms of the Federal Reserve.
U.S. government bonds and the dollar also dropped in an unusual move, suggesting that Washington's policies are weakening their reputation as safe investments.
Trump's harsh trade rhetoric has economists warning that his proposed tariffs might trigger a recession, particularly after failed U.S.-Japan talks.
"The golden rule of negotiating: He who has the gold makes the rules," Trump stated while defending his tariff policies against criticism.
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