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US Stock Futures Plunge as Trump Tariffs Trigger Global Market Selloff
The introduction of new tariffs by the Trump administration has sent shockwaves through the global financial market, causing a significant decline in stock futures. The sudden and unexpected move is expected to have far-reaching consequences for both US and international investors.
According to reports, the average American household will need to pay an additional $2,100 per year as a result of these tariffs. This drastic increase in costs is projected to lead to a 2.1% decline in after-tax incomes on average this year.
Major financial institutions such as JPMorgan and Goldman Sachs have revised their forecasts to reflect the impact of the tariffs. JPMorgan has raised its recession risk forecast to 60%, while Goldman Sachs now predicts a 35% chance of a recession within the next 12 months.
The market is reeling from the news, with the Dow Jones Industrial Average closing in correction territory and the Nasdaq entering bear market territory. The S&P 500 index has plummeted by an alarming 17.4% since its all-time high on February 19.
Federal Reserve Chair Jerome Powell acknowledged that the tariffs will drive prices higher and slow economic growth, but indicated that the central bank is monitoring the situation without rushing to act.
President Trump has remained defiant in the face of mounting criticism, claiming that this economic revolution will ultimately lead to a stronger nation. In an interview on Sunday evening, he emphasized his commitment to addressing the trade deficit with China and other nations before considering any deals or negotiations.
Despite the dire market conditions, some analysts believe that buying opportunities are emerging from the selloff. James Demmert of Main Street Research notes that “we tend to see rallies” when stocks drop as deeply and rapidly as they have in recent days.
While there is no immediate end in sight for this global market downturn, investors should remain vigilant and prepared for any potential shift in the situation.
Sources:
Source: https://blockonomi.com/us-stock-futures-plunge-as-trump-tariffs-trigger-global-market-selloff/
