TRUMP’S TRADE TERROR: MARKETS CRASH AS TARIFFS SPIRAL OUT OF CONTROL!
Brace Yourself! The Economy is Plummeting!
The financial world is in full-blown panic! Stock markets were shaken to their core on Monday as President Donald Trump defiantly doubled down on his controversial trade policies, sending investors scrambling for safety amid looming recession fears that now threaten to engulf the globe!
Equity markets took a nosedive, with the blue-chip S&P 500 crashing nearly 2% and the tech-savvy Nasdaq plummeting by a staggering 2.1%! But that’s not even the worst of it! The Hang Seng index in Hong Kong recorded its worst single-day collapse in over two decades, plummeting more than 13%!
In Europe, the carnage spread like wildfire! The Stoxx Europe 600 index cratered by 3.8% while Germany’s DAX plunged as much as 10% during the opening frenzy! The FTSE 100 in the UK was also swept up in the chaos, dropping 3.5%.
Goldman Sachs Raises the Alarm!
Things are looking grim! Goldman Sachs has raised the odds of a US recession from 35% to a shocking 45%! This comes hot on the heels of Trump’s aggressive tariffs that have left global markets reeling since last week.
Trump boldly proclaimed that these so-called “reciprocal tariffs” are raking in “Billions of Dollars a week!” He’s not afraid to threaten nations, warning them not to retaliate—calling out decades of trade "abuse" against the "Good Ol’ USA."
Last week, in what he dubbed "liberation day", he unleashed a financial bombshell by slapping duties of over 40% on key trading partners. Guess what happened next? China fired back with retaliatory tariffs of 34%.
Stock Market Bloodbath: $5 Trillion Wiped Out!
Get this — in just two days, over $5 trillion was wiped from the S&P 500, marking the worst week for the index since the pandemic began! How’s that for economic stability?
Even some of Trump’s supporters are ringing alarm bells! Billionaire investor Bill Ackman blasted Trump’s tariffs on X, warning that they could drown the US in a “self-induced, economic nuclear winter.” He didn’t hold back, targeting commerce secretary Howard Lutnick for being “indifferent” to the market carnage.
The Rich Get Richer While the Rest of Us Suffer!
As the markets tumbled, savvy investors like Ackman pointed fingers at those profiting from the chaos. He claimed Lutnick profits when the economy “implodes.”
Stanley Druckenmiller, another billionaire hedge fund titan, voiced his dissent, saying, “I do not support tariffs exceeding 10%.” Meanwhile, US Treasury yields hovered around 3.99%, as safe haven bonds skyrocketed in demand like hotcakes!
Oil Prices Crash and Bitcoin Stumbles!
But that’s not all—commodities are taking heavy hits too! Oil prices sank with West Texas Intermediate dropping 2.6% to $60.36 per barrel. Bitcoin isn’t immune either, as it tumbled 2% to $77,232!
The US dollar also slipped against top trading partner currencies, catapulting the Chinese renminbi to its weakest level since December at Rmb7.19 a dollar.
What’s Next? The White House Stands Firm!
Despite the upheaval, Treasury Secretary Scott Bessent brushed off the market reaction as “short-term”. He vowed the White House would “hold the course.”
With the stakes higher than ever, the world watches with bated breath as this explosive trade saga unfolds. Will the economy survive Trump’s tariffs, or are we staring down the barrel of an economic catastrophe? Stay tuned!
photo credit: www.ft.com
