As expected, the US president’s announcement has dropped most of the financial markets. One of the biggest impacts was felt in the United States, with S&P500 and NASDAQ live the worst casualties in five years.
Wall Street closed on Friday in a sharp low, the next day Donald Trump announced a strong commercial offensive, which fears for the US economy, with S&P500 and Nasdaq living the worst casualties in five years.
Session results indicate that the selective index Dow Jones Industrial Averag lost 3.98%, the technology Nasdaq fell 5.97%, the worst performance since March 2020 and the wide S & P500 retreated 4.84%, the largest loss since June 2020.
A devaluation of shares at Friday’s session is estimated at thousands of millions of dollars. The scholarship square was shaken by By Trump, who caused a panic wind in most markets.
These military aggravations are particularly heavy for Asian and European Union (EU) exporters, raising reprisal threats that can lead to the asphyxiation of the US’s economies, but also from the US.
The White House offensive, without parallel since the 1930s, predicts supplementary customs of 10% and majors for some countries: 20% for the EU, 34% for China, 24% for Japan and 31% for Switzerland.
“Customs rates are higher and more serious than expected and it will take time to determine the exact effects, not only on the economy, but also on the profits of companies,” said Tom Cahill, a Ventura Wealth Management analyst, in statements to AFP. “The growth of companies’ profit will be much weaker than Wall Street had predicted”considered.
Trump presented the new rates as a magic revenue capable of reindingtrializing the country, rebalancing the trade balance and erasing the commercial deficit, unlike most economists, which anticipate harmful consequences for the US economy.
“The demand will be less strong than predicted, because numerous consumers will examine both availability and make difficult decisions,” Cahill said. “Consumers will start saving more from the outset because they are full of doubts about the future,” he predicted.
“The federal reserve will return in front of the stage and, if unemployment increases and economic growth weaken, it should make more important reductions ” From their interest rate than the two planned so far, it has developed Edward Jones Angelo Kourkafas.
In the titles, most had strong devaluation. World Capitalization, Apple had the worst session in five years, retreating 9.25%, which meant the loss of $ 300 billion from scholarship capitalization, but Dell retreated 19.00%, HP 14.74%, Broadcom 10.51%and Nvidia 7.81%.
In the textile industry, with much of the production made in China and Vietname, with a health of 34%and 46%, which adds to existing rates, the losses were exemplified by GAP (-20.38%), Ralph Lauren (-16.27%), Nike (-14.47%) and Lululemon.
“If customs rates persist for a long time, I think the scholarship market can be substantially lowering,” Cahill predicted.
