New York Stock Exchange reels from $6.4 (CAD 9.1) trillion tariff hit
The New York Stock Exchange has seen record losses amounting to $6.4 (CAD 9.1) trillion over the past two days. This downturn is attributed to the newly announced tariffs by the USA and retaliatory tariffs from China.
What do you need to know?
- The New York Stock Exchange lost $6.4 (CAD 9.1) trillion over two days, setting a new record.
- Tariffs imposed by the USA and China are the primary cause of the market decline.
- The biggest declines were seen in technology, energy, and financial sectors, including companies such as Tesla and Apple.
What are the causes of the record losses?
According to the "Wall Street Journal," the New York Stock Exchange lost $6.4 (CAD 9.1) trillion over two days. This is a result of the announced tariffs by the USA and China's retaliatory tariff announcement.
The Dow Jones index dropped by over 2,000 points on Friday, which, when combined with Thursday's declines, resulted in record-setting losses.
Which companies were most affected?
Friday’s trading on Wall Street ended with even deeper declines than Thursday’s. The Dow Jones Industrial Average index decreased by 5.5%, the S&P 500 by 5.9%, and Nasdaq by 5.8%.
The largest declines were noted in technology, energy, and financial companies, particularly Tesla (-10.4%), NVIDIA (-7.3%), and Apple (-7.2%).
What's next with the U.S. tariff policy?
China announced the imposition of retaliatory tariffs on the USA amounting to 34%, and President Trump vowed that "my policies will never change."
Jerome Powell, the Chairman of the Federal Reserve, cautioned that the economic impacts of these tariffs could be more significant than expected, potentially leading to higher inflation and slower growth.
