As the much-anticipated “Liberation Day,” proclaimed by US President Donald Trump, approaches, global stock markets are witnessing significant declines. On Wall Street, the S&P 500 has fallen 1.3% after experiencing one of its worst losses in recent years, projected to finish the first quarter down 6.4%, marking its worst performance in nearly three years. The Dow Jones Industrial Average and Nasdaq also faced drops, with the former losing 295 points (0.7%) and the latter declining by 2.3%.
This downturn follows a worldwide sell-off on Monday, driven by escalating concerns over impending tariffs set to take effect on Wednesday. These tariffs, part of Trump’s strategy to restore manufacturing jobs in the US, are feared to exacerbate inflation and impede economic growth. International markets mirrored the US trends, with Japan’s Nikkei 225 plummeting by 4%, and South Korea’s Kospi and France’s CAC 40 experiencing declines of 3% and 1.5%, respectively.
In contrast, safer investments like gold have seen price increases, climbing to over $3,150 per ounce, as investors seek refuge from the volatile stock market. Additionally, Treasury bond prices have risen, leading to a decrease in yields, further exacerbating concerns as Thursday heralds the start of tariffs.
Despite speculation that Trump’s tariffs may not be as severe as anticipated, uncertainty around their implications could lead to reduced consumer and business spending, adversely affecting an economy that had closed last year on a positive note. On Wall Street, notable declines were seen in major tech stocks, such as Tesla, which dropped 7.3%, adding to its year-to-date loss of nearly 40%. Tesla’s struggles have been linked to the increasing scrutiny of CEO Elon Musk and growing political backlash against his spending policies.
Other tech giants have also faced challenges, with Nvidia and significant airline stocks like United and Delta dropping quite substantially. Notably, Mr. Cooper, a home loan servicer, saw a significant gain of 18.3% after announcing a merger with Rocket Mortgage in a $9.4 billion deal.
Internationally, Thailand’s SET index fell by 1.5% following a devastating earthquake in Myanmar. Meanwhile, shares of Italian Thai Development experienced a dramatic drop after a building collapse led to a search for missing construction workers.
Overall, the atmosphere in global markets remains tense as investors brace for economic shifts linked to imminent tariffs and geopolitical uncertainties.