Dollar Jumps, Stock Futures Drop on Tariffs: Market Roundup
The dollar jumped and stocks plunged as U.S. tariffs kicked off a trade war that threatens economic growth around the world.
The Bloomberg Dollar Index jumped 0.9%, trading near a two-year high, before paring some of the gains. President Donald Trump announced tariffs on Canada, Mexico and China, and warned that European levies would come soon. The Canadian dollar fell to its lowest level since 2003 and the euro weakened. The impact of the tariffs rippled through global markets. S&P 500 futures fell 1.6%, while U.S. oil prices rose on concerns about supply disruptions. Shares of European automakers fell, with Volkswagen AG and Stellantis NV down more than 5%. Cryptos also took a hit, with ether plunging 11% in a broad move away from riskier assets. Trump’s move was the broadest protectionist move by a U.S. president in nearly a century, with ripple effects on everything from inflation to geopolitics and economic growth. Goldman Sachs Group Inc. strategists said there was a risk of a 5% decline in U.S. stocks because of the hit to corporate earnings, while RBC Capital Markets put the range at 5% to 10%. “He looks like a poker player who bets his entire bankroll on the first hand,” Steven Englander, global head of G-10 FX research at Standard Chartered Plc, told Bloomberg TV on Monday. “The market is not ready for that.”
Source: Bloomberg
