Wall Street Faces Losses Ahead of Trump’s Latest Tariff Announcement
Wall Street is set for a sluggish start on Wednesday, with stock futures indicating losses ahead of Trump’s announcement on new US tariffs.
Wall Street is set for a sluggish start on Wednesday, with stock futures indicating losses ahead of President Donald Trump’s announcement on new US tariffs, the Associated Press reported amid market uncertainty as investors brace for potential economic fallout.
According to the report, futures for the S&P 500 fell 0.6%, while the Dow Jones Industrial Average dropped 0.5%. The Nasdaq, already in correction territory, saw a further decline of 0.7%, the report said, adding that every sector in the S&P 500 was in the red, with consumer staples being the only exception. The hardest-hit sectors included autos, transportation, industrials, and technology.
Trump’s new round of tariffs, which he has referred to as “Liberation Day,” aims to bring manufacturing back to the US while penalizing countries he claims have engaged in unfair trade practices for years. However, most economists have warned that these tariffs could push the economy into a recession, potentially straining long-established global alliances.
The reciprocal tariffs Trump plans to announce are part of a broader strategy that includes recent moves such as 25% taxes on auto imports, levies on countries like China, Canada, and Mexico, and expanded tariffs on steel and aluminium. Additional tariffs have been imposed on countries importing oil from Venezuela, and Trump has indicated future tariffs on pharmaceutical drugs, lumber, copper, and computer chips.
According to the report, the anticipated announcement is contributing to increased volatility in the markets, with momentum swinging hourly as traders react to the uncertainty surrounding the measures. Investors are concerned about the potential for higher inflation and slower economic growth as a result of the tariffs.
In a sign of the market’s anxiety, gold—a traditional safe haven during times of market instability—has been trading at record highs, continuing its upward trend on Wednesday, the report said.
In European markets, investor sentiment was similarly downbeat. France’s CAC 40 declined by 0.7%, Germany’s DAX slid nearly 1.3%, and the UK’s FTSE 100 fell 0.6%. Meanwhile, Asian markets were more mixed, with Japan’s Nikkei 225 gaining 0.3% to close at 35,725.87. Hong Kong’s Hang Seng remained virtually unchanged, and the Shanghai Composite inched up by less than 0.1%.
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