Wall Street’s actions have diminished as concerns about the economic effects of Donald Trump’s tariffs, and Tesla led powerful sales in previously high technological actions.
The S&P 500 index lost 2.7 % on Monday, after falling 3.1 % last week in the worst weekly appearance in six months, as major US banks took advantage of the previous promise of Nakhakan to stock this year.
Technologically focused Nasdaq Composite sank 4 percent, the worst day for two and a half years. The technological index has been reduced by more than 13 % of its December peak, leaving it on the correction territory.
“This big sale feels ugly, it feels uncomfortable,” said Drew Petit, a Citigroup capital strategist. “We were very high sentimental and very high expectations for growth. All this is just a calculation of the new risks that are ahead of us, “he said, referring to concerns about the health of the aggressive trade policy of the American consumer and Trump.
Sales spread to Asian markets on Tuesday, where the Nikei 225 export -oriented index in Japan and Topix and both demand 2.3 % in early trading. South Korea’s Korea fell 1.9 %, and Australia’s S&P/ASX dropped by 1.4 %. Hong Kong Kong Hang Seng’s index fell 1.5 percent.
American technology actions – which drove the Wall Street markets higher in the previous two years – were among the biggest lags, which expanded the recent Ruth.
TeslaThe electric car company led by Trump Ali Elon Musk, fell 15.4 percent. Now gave up all those post-election benefits and fell more than 50 % of the high December.
The chip giant Nvidia, who was one of the biggest winners of the recent investor enthusiasm for artificial intelligence, fell by 5.1 percent.
Banks’ shares also fell, with Morgan Stanley and Goldman Sachs dropped by 6.4 % and 5 %, respectively. Shares in Private Investment Groups KRC and Ares require 6.2 % and 8.9 %, respectively.
“What we see today is that people are selling what they possess,” said Jep Perkins, Chief Investment Officer in Potam Investment. “And people own many companies related to AI.”
The latest congestion of instability, which also drags markets in Europe and Asia, came after the US president on Sunday refused to shut off recession or rise in inflation because he has rejected business problems due to lack of clarity for his Tariff plans.
The White House said on Monday: “We see a strong divergence between the animal ghosts on the stock market and what we actually see is unfolding by businesses and business leaders, and the second is obviously more important than the former of what is in line with the medium and long economy.”
However, research on business and consumers has raised an increase in concerns about the economic appearance. Delta air lines late on Monday reduced forecasts for profits and salesstating the economic “uncertainty”. His shares fell more than 13 % in hours trading.
In Europe, where shares exceeded the United States this year, the Stoxx Europe 600 index lost 1.3 %, which lowered banks and technological actions. The German Dax, which reached a series of record highs last week, after the country agreed with a historic spending package, fell 1.7 %.
The US Treasury Department of Finance gathered on Monday, as investors demanded funds for shelter. The 10-year-old yield, falling as prices rises, decreased by 0.1 percentage points to 4.22 %.
The VIX index, known as Wall Street’s fear meter, has climbed to the highest level since mid -December.
Investors are concerned about Trump’s trade war, hurting the US economy by disappointing job numbers on Friday the latest in the run of weak data.
China’s return tariffs to about $ 22 billion in US products, including agricultural exports, entered on Monday.
During the weekend, Finance Secretary Scott Bilen provided a little in a way of assuring concerned investors as he acknowledged signs of economic weakness in the United States. “Can we see that this economy we inherited starting to roll a little? Of course, “he told CNBC.
Trump and furious seems to be ready for “some pain to reorient the economy,” Deutsche Bank’s Jimim Reed said. “Taken at nominal value, these quotes suggest that the level of pain is higher than most would believe a few weeks ago.”
Goldman Sachs on Monday reduced its growth for growth for the US economy to 1.7 %, compared to 2.4 % at the beginning of the year, as trade policy assumptions became “significant more”.
The capital market is falling from the last few weeks Mark a sharp twist From the mood late last year and earlier this year, when hopes of deregulation and tax cuts under Trump have prompted the market rally.
Instead, the duties for commodity commodities such as CanadaMexico, China and the EU have forced investors to strengthen their bets and many to get the risk.
S&P can reduce almost 20 % of current levels if “growth drops more significant and the recession is likely,” said Morgan Stanley Stanley’s chief strategist Michael Wilson in a note to customers on Monday. “We are not there, but things can change quickly.”
JPMorgan thinks the index could fall to 5,200-a-pay of nearly 10 % of current levels-in-line “trade uncertainty”, while City analysts believe Trump’s outcome could boost S&P up to 5,500 points. In December, an average of 10 global banks were expected The index to climb approximately 10 % in 2025 to about 6,550 points.
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