If this is winning, what does losing feel like?
Stocks Plunge, Dollar Sinks After Trump’s Tariffs Blitz
The Wall Street Journal reports Stocks Plunge, Dollar Sinks After Trump’s Tariffs Blitz
U.S. markets slid Thursday in one of their worst days in years, as investors grappled with the threat that President Trump’s sweeping new tariff plan will hurt economic growth and corporate profits.
Major stock indexes dropped as much as 5% and stood poised to suffer their worst day in more than two years. Stocks have lost roughly $2.7 trillion in market value Thursday, on track for their largest decline since March 2020.
The Dow industrials dropped about 1200 points, nearly 3%. The tech-heavy Nasdaq, which powered the market higher for years, slid 4.8%, led by big declines in Nvidia, Apple and Amazon.com.
President Trump’s lifting of tariffs to above the notorious Smoot-Hawley rate of 1930 is a tax on imported goods, and the biggest tax rise in modern history. Not surprising, then, that stocks have plunged, with the Nasdaq off 5.2%, which if sustained would be its worst day since the lockdowns of March 2020.
Reactions
- Gold Continuous Contract GC00 $3131.00 USD-35.20 -1.11%
- Crude Oil CL.1 (NYM) $66.60 USD-5.11 -7.13%
- DJIA DJIA (Dow Jones Global) 40963.39-1261.93 -2.99%
- Nasdaq COMP (Nasdaq) 16739.44-861.60 -4.90%
- S&P 500 SPX (S&P US) 5457.16-213.81 -3.77%
- Russell 2000 Index RUT (US Composite) 1935.18-110.18 -5.39%
Canada to Hit U.S. Autos With Retaliatory Tariffs
Also note Canada to Hit U.S. Autos With Retaliatory Tariffs
Canada will match President Trump’s auto tariffs with 25% tariffs of its own on U.S. vehicles that are not compliant with the U.S.-Mexico-Canada trade pact, Prime Minister Mark Carney said on Thursday.
He said the countertariff would apply only to finished vehicles and wouldn’t affect vehicle content from Mexico. It wasn’t immediately clear how many vehicles would be affected, but Carney said the tariff could raise $5.6 billion U.S., which would be used to help workers and companies affected by the Trump tariffs.
Bonds Rally
Bonds are up (yields down)
- 10-Year Yield: -15 basis points to 4.05 percent
- 30-Year Long Bond: -7 basis points to 4.77 percent
- 5-Year: -19 basis points to 3.76 percent
- 2-Year: -17 basis points to 3.74 percent
Simply Crazy
This is crazy, definitely not winning.
Will Trump stay with this and for how long?