Wall Street opened on Friday to a sharp decline in the continuation of the losses that incurred it with yesterday’s dealings, as investors rushed to sell the shares after a serious escalation in the trade war between the United States and China after US President Donald Trump announced on Thursday to impose customs duties on most countries of the world.
At the opening, the Dow Jones Industrial Index fell 994.46 points at the opening bell, or 2.45%, to reach 39551.47 points, and the technical “correction” area enters after it retreated by more than 10% of its last peak.
The Standard & Poor’s 500 index lost about 134.05 points, equivalent to 2.48%, to start at 5262.47 points, while the Nasdaq complex index, which includes the largest technology companies, decreased by 473.16 points or by 2.86% to 16077.44 points.
However, the losses did not stop at the beginning of the session, but were exacerbated during trading, at 14:18 GMT, American stocks continued to decline, to lose the NASDAC index more than 4.01%, amid a strong wave of sale, according to direct American stock exchange data.
At the same time, the energy sector in the Standard & Poor’s index recorded 500 a sharp decline of 5.8%, to reach its lowest level since January 2024, which reflects great pressure on oil prices and the shares associated with it, according to instant data reported by specialized financial agencies at 14:03 GMT.
A sharp decline in European markets
The American markets were not affected by; The European Stoxx 600 index continued its decline today, recording a 5.3% decrease by 14:45 GMT, reaching its lowest level during the session.
This mass decline reflects the transfer of anxiety from the American market to its European counterpart, in light of the increasing concerns of an imminent global recession.
Customs escalation ignites tensions
This sharp decline came after China announced the imposition of customs duties by 34% on all American imports, starting from April 10, in response to the last round of the fees imposed by US President Donald Trump on a wide range of Chinese goods.
The New York Post reported that investors are afraid that this customs war will lead to a global economic stagnation in the event of continued escalation, noting that the comprehensive Chinese response may have a great impact on global trade and supply chains.
Technology and retail shares top the losses
The largest American companies with great exposure to the Chinese market incurred heavy losses during today’s trading, as Apple shares fell by more than 9% in early trading, while the shares of Nike (producing clothes, shoes and sports tools) fell by more than 14%, reflecting the volume of anxiety about supply chains disorders and international sales decline.
The New York Post indicated that this sales trend has extended to most sectors, including the financial, industrial and consumer sector, amid a collective sale wave that is still ongoing.
Despite the strong job report issued this morning, which showed the addition of the American economy 228,000 jobs in March, the state of anxiety prevailed in the markets.
The VIX index, known as the “Fear” index in Wall Street, has risen to its highest level since August 2024, indicating a significant increase in risk levels, according to Reuters.
Trump defends his economic policy
On the other hand, former US President Donald Trump defended his commercial policies in a publication on his social platform “Truth Suosal”, saying: “To the many investors who come to the United States and invest huge sums of money, my policies will never change. This is a great time to become rich, richer than ever !!!”.
Meanwhile, economists fired serious warnings of the repercussions of escalation, as GB Morgan Chase estimated the possibility of the American economy in a 60% stagnation if the situation continues as it is.
Investors are awaiting a speech from the Federal Reserve Chairman Jerome Powell, amid weightings that the monetary institution will intervene by adjusting interest rates to deal with the increasing economic pressures, according to the Wall Street Journal.
While the global markets suffer from a wave of similar fluctuations, experts warn that the coming days may bear more tremors unless a quick diplomatic solution is reached. Until then, investor morale remains cautious, and fluctuations are candidate to continue.
Source : Al Jazeera + Reuters + Guardian + New York Post + Wall Street Journal
