Cnn
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Chaos on the market induced by prices is not yet finished.
Us Stock Futures dived Sunday evening after Two sales sessions which suffered more than $ 5.4 billions in market value. The shares were to open more than Monday, putting the S&P 500 on the precipice of a lower market – a decrease of 20% compared to its peak and a worrying sign for investors and perhaps the wider economy.
The term contracts on Dow fell by 1,250 points, or 3.3%. The term contracts on S&P 500 dropped by 3.7%, while the term contracts on the NASDAQ dropped by 4.6%. Asian markets: Nikkei from Japan dropped 8% at the opening.
The price of US oil has dropped by more than 3%, in less than $ 60 a barrel for the first time since April 2021. Oil prices have been in free fall, because investors fear that prices can plunge the world economy into a recession that would request flights, shipments, transport and travel – all activities that require fuel.
Bitcoin also joined the decreases – down 5.6% to $ 78,736.93. Bitcoin had exceeded $ 100,000 shortly after the election of Trump in the hope that he would help strengthen support for cryptocurrencies.
The massive reductions in term contracts follow the worst two -day section for five years actions – from the pandemic. The markets rejected The massive tariff regime of President Donald TrumpSome of which entered into force early Saturday morning and even larger prices should be launched on Wednesday morning. China retaliated fiercely on Friday, imposing a rate of 34% on all American goods, which raises fears of climbing and increasing the trade war.
Trump told journalists in the Air Force on a Sunday evening that he does not intentionally crash, but refused to predict how the markets would be negotiated in the future.
“What will happen with the market? I can’t tell you,” said Trump. “But I can tell you that our country has become much stronger, and ultimately it will be a country like no other.”
Market analysts said investors have not yet had a sale.
“The sudden sales pressure last week is expected to continue on Monday, because the market tells us that investors are not yet clarified on the implications of prices, price reprisals and fear that economic growth is likely to slow down for a full stand or recession,” said James Demmert, director of investments at Main Street Research.
A universal rate entered into force on Saturday after Trump signed an executive decree earlier in the week requiring a reference tax for all imports. The announcement triggered an uproar from American trade partners – allies and enemies – as well as American companies, investors and consumers.
On Wednesday, America will impose much higher “reciprocal” prices on nearly 90 countries with the highest commercial imbalances with the United States.
Trump has also set up prices on cars, steel and aluminum. He placed 25% of prices on certain goods from Canada and Mexico.
And more prices could also be on the way: rates on automotive parts should come into force no later than May 3. And Trump has also threatened with wood prices, pharmaceuticals, copper and micropuits, among other products.
The Trump administration offered inconsistent messages on the question of whether the prices would be open to negotiations.
“The prices arrive. (Trump) announced it, and he did not please. The prices are coming. Of course they are,” said CBS Howard Lutnick Trade Secretary on Sunday.
But Trump said that he had aroused calls from technological leaders and world leaders during the weekend on prices, saying that in these conversations: “They are very nice.”
“I have spoken to many countries. They all want to do just so that you understand the power of what I do. Each country calls and is very concerned, very, very kind and very nice,” he added.
The president, who has long shaped a job, has established what it would take to conclude an agreement with China on prices, stating in part that “they must resolve their excess”
“I’m ready to face China, but they have to resolve their excess,” he said. “We have a huge problem of deficit with China.”
The president also said that he wanted to resolve the deficit with the European Union and if they are open to this, he was open to speak.
“I want to solve the problem of the deficit we have in China, with the European Union and other nations, and they will have to do it. And if they want to talk about it, I am open to speak,” he said.
Fear of the recession has seized Wall Street in recent days. JPMorgan analysts said last week that prices would increase Taxes on Americans by $ 660 billion per year – the highest increase in tax (by a long) in recent memory. This will also increase prices, adding 2% to the consumer price index, a measure of American inflation which has struggled to return to earth in recent years.
JPMorgan Executive says that inflation and recession probably from prices
If Trump maintains the massive rates he announced on Wednesday, his unprecedented trade policies will probably drop American and global economies in recession in 2025, JPMorgan analysts said. JPMorgan analysts increased the risk of 60%recession on Thursday, while Goldman Sachs increased last week by his probability of recession in the next 12 months to around 35%.
Friday, the DOW closed in correction territory, down more than 10% compared to its record in December – the first time that the index closed in correction in more than three years. The NASDAQ has closed on a lower market for the first time since 2022, down more than 20% compared to its record in December.
And the S&P 500 is on the precipice of a lower market. He dropped 17.4% since he set a record level on February 19, and he should open on Monday in the bear market territory.
Investors did not seem to be calmed by the fact that Trump met leaders from several countries, perhaps to conclude agreements that could reduce prices. Trump is expected to hold a press conference with Israeli Prime Minister Benjamin Netanyahu on Monday afternoon after a meeting that should include a discussion on prices.
The markets have dropped because prices could considerably increase prices for American companies and consumers. Indeed, importers pay the prices, not the countries exporting the goods that Trump has targeted.
Companies that import goods generally transmit all or part of these costs for wholesalers, retailers and, in the end, consumers. Although some retailers with powerful supply chain checks can eat part of the cost, others will not be able to take such a blow.
On Friday, the president of the federal reserve, Jerome Powell, acknowledged that Trump’s prices, which were much more aggressive than the central bank had provided it, would increase the higher prices and slow the economy. Powell said the Fed was not in a hurry to act, but watched the effects on the economy.
The non -partisan tax foundation said that the average American household will pay $ 2,100 per year more for goods due to important universal and reciprocal rates that Trump announced on Wednesday. He said that the average import tax in America would increase to 19% this year, compared to 2.5% last year – the highest rate since the Smoot -Hawley era in 1933. Fitch ratings said that the rate would increase even more, sending America’s effective rate to its highest level in more than a century.
Consequently, income after taxes of Americans will decrease by 2.1% on average this year, said the tax foundation.
The good news may be that the scholarship has created certain purchasing opportunities for investors. Actions are negotiated with a projection of future profits of 15 times historically cheap now. This could help markets to bounce back if investors think that the shares are occurred.
“We are approaching a background,” said Demmert. “The fact that actions have dropped so considerably in these deep intraday movements is a clear sign of blind and fear -based sale. When this happens, we tend to see significant rallies soon.”
This story has been updated with additional content.