- The stock market continued its downfall on Friday As Nasdaq fell on the bear market in the middle of falling from the huge tariffs of President Donald Trump. China aligned with 34% of retaliation tariffs on US imports. In the midst of market unrest, Trump called on Jerome Powell to reduce interest rates, but the Fed chief muffled hopes into a immediate cut.
The shares market continued to fall on Friday after the worst sales from one day from 2020 on Thursday after the “Liberation Day” by President Donald Trump encouraged the fear of a global trade war that could now bring in a recession.
The industrial average Dow Jones fell more than 4%, losing 1,600 points, after 1,679.39 points on Thursday.
The S&P 500 slid 4.7%on Friday, and Nasdaq sank 4.6%, sending the Tech-Heavy index more than 20%below the recent maximum and putting it on the bear market.
Thursday night, Jpmorgan He increased the odds of recession from 40% to 60% after Trump’s latest tariffs.
While investors are seeking bond safety, a 10 -year -old treasurer slid below 4% on Friday, near the lowest levels from September.
Early on Friday, Beijing announced that he would take revenge on Trump’s 34% tariff on imports from China by imposing the appropriate levies to US imports. In addition, China added several companies to “A list of unreliable entities“Which deals with foreign entities that have violated market rules or contractual obligations. China also opened an investigation by antitrust Dupotcausing its shares to fall 12%.
Trump stood firmly on his aggressive import duties, saying that his “politics will never change” ua Truth social fast.
In the second post on Truth socialTrump requested the president of the federal reserves of Jerome Powell lower interest rates and “stop playing politics.”
But Powell warned on Friday that they could clean the inflation of a larger, cold hope that interest rates would fall soon.
“Larger tariffs will go through the economy and are likely to raise inflation in the upcoming districts,” he said at a conference of business journalism in Washington, DC
Trump’s tariffs were “much bigger than expected,” Powell added. Although he noted that the economy is currently healthy, citing positive Job report Posted on Friday, he said that uncertainty from Trump’s great import duties makes consumers and companies nervous, forcing the FED to hold.
“We are in good positioning to wait for greater clarity before considering any adaptation of the attitude of our policy,” Powell said. “It is too early to say which will be the appropriate path for monetary policy.”
This story is originally shown on Fortune.com
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