Wall Street Takes a Hit on Trade War Fears, Fed Remarks
US stock extended the selloff on Friday after Fed Chair Jerome Powell warned that the economic fallout from the escalating trade war could be worse than expected, while fears of a trade war rattled markets.
The S&P 500 sank nearly 6%, the Dow plunged 2,230 points, and the Nasdaq lost 5.8%, hitting their lowest levels since last May. Powell cited rising risks of inflation and slower growth, while reaffirming a cautious, wait-and-see stance on rate cuts.
Market anxiety grew after China’s finance minister announced a 34% tariff on all U.S. imports, mirroring President Trump’s move on Wednesday. Economists warned of higher prices, weaker growth, and a potential recession, despite stronger-than-expected payroll data.
Losses were broad-based, with energy leading the decline, followed by financials, tech, and industrials. Tech giants like Apple (-5.9%), Microsoft (-3.5%), Nvidia (-7.4%), Amazon (-4.1%), Meta (-5%), Alphabet (-3.4%), and Tesla (-10.4%) experienced steep declines.
Source: Trading Economics
