- The stock market continued its collapse on Friday like the Nasdaq fell into a lower market in the middle of the fallout from the heavy prices of the “liberation day” of President Donald Trump. China has equaled the United States by imposing 34% reprisals on American imports. In the middle of the bustle of the market, Trump called Jerome Powell to reduce interest rates, but the Fed chief attenuated hopes for an imminent reduction.
The stock market has continued to fall on Friday after the worst day since 2020 on Thursday after the prices of the “Liberation Day” of President Donald Trump aroused the fear of a world trade war that could lead the United States to a recession.
The industrial average of Dow Jones collapsed by 5.5%, losing 2,231 points, after a slide of 1,679.39 points on Thursday.
The S&P 500 sank 6% on Friday, and the NASDAQ crashed 5.8%, sending the technological index more than 20% below its recent summit and putting it in the market territory.
Thursday evening, Jpmorgan brought the chances of recession from 40% to 60% as a result of Trump’s last rates.
While investors are looking for the security of bonds, the 5 -year -old treasure yield briefly slipped below 4% on Friday, near its lowest levels since September, before moving to 4.015%.
Early Friday, Beijing announced that it would retaliate against 34% of Trump prices on imports from China by imposing samples matching American imports. In addition, China has added several companies to its “List of unreliable entities“, Which is aimed at foreign entities that have violated market rules or contractual obligations. China has also opened an antitrust survey on Dupontdragging its shares by 12%.
Trump has firmly held on his aggressive import rights, saying that his “policies will never change”, in a Social truth job.
In another article on Social truthTrump demanded the president of the federal reserve, Jerome Powell, the lower interest rates and “stop doing the policy”.
But Powell warned on Friday that radical prices could push higher inflation, hoping that interest rates will drop soon.
“Higher prices will make their way in the economy and will have to increase inflation in the coming quarters,” he said at a business journalism in Washington, DC
Trump’s prices were “much larger than expected,” added Powell. While it noted that the economy is currently in good health, citing a positive Job report Released on Friday, he said that the uncertainty of the heavy import rights of Trump makes consumers and nervous companies, forcing the Fed to a period of detention.
“We are well placed to wait for greater clarity before considering any adjustment to our political position,” said Powell. “It is too early to say what the appropriate path will be for monetary policy.”
This story was initially presented on Fortune.com
