The US stock market, represented by the S&P 500, fell 1.39 percent, indicating a correction as it drops over 10 percent from its February peak. This downturn follows President Trump's threats of imposing hefty tariffs on European alcohol products, which has unnerved investors. The volatility is exacerbated by the uncertainty regarding the longevity of these tariffs, with comparisons drawn to previous trade negotiations during Trump's first term. The losses reflect a broader trend of over $5 trillion in market value lost amidst fluctuating trade policies and investor anxiety about future economic stability.
The benchmark S&P 500 fell 1.39 percent on Thursday, dragging the index into a correction, which is a decline of 10 percent or more from its peak.
The S&P 500 last entered correction territory in October 2023, when the index slid 10.3 percent from its peak that July.
Since February, US stocks have lost more than $5 trillion in market value, indicating severe investor unease amid ongoing trade tensions.
The main difference between the trade wars of Trump's first and second terms is the perceived durability of tariffs, impacting market confidence more significantly.
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