Wall street sees worst day since covid-19 as tariffs weigh on investor confidence

It’s a sea of red across global markets, which are still reacting to news of the tariffs. US stocks wiped out some USD 3.1 tn in market value in the steepest declines the indices have seen since March 2020 during the early days of covid-19. The tech-heavy Nasdaq lost 6%, pulled down by the likes of Apple and Nvidia, which continued to see heavy sell-offs, while the S&P 500 fell nearly 5%, and the Dow Jones lost 4%.

Meanwhile, the USD fell 1.3% to its lowest in six months on the back of concerns over US growth projections and inflationary pressures. On the flip side, safe havens like the EUR and the JPY gained, with the former hitting a six-month high, and both the JPY and the CHF at their strongest against the greenback in six months.

It wasn’t just US stocks: Europe’s Stoxx 600 closed 2.7% lower Thursday, while the UK’s FTSE 100 fell around 1.7%, and German, French and Italian markets lost 3%.

Amid the market turmoil, Trump remained staunchly optimistic: “I think it’s going very well,” Trump told reporters in response to questions about his tariffs. “The markets are going to boom.”

Volatility is not expected to let up anytime soon: “Eye-watering tariffs on a country-by-country basis scream 'negotiation tactic,' which will keep markets on edge for the foreseeable future,” global head of multi-asset at Janus Henderson Investors, Adam Hetts said in a commentary picked up by Reuters. Despite the resilience so far to market shocks, “the big question is how much tolerance [the Trump administration] has for true economic pain as negotiations unfold,” he said.

MARKETS THIS MORNING-

Asian markets were not spared either, extending their declines from yesterday, with Japan’s Nikkei leading losses and South Korea’s Kospi also trading lower. Hong Kong and China’s markets are closed for a public holiday.

THE CLOSING BELL-

The DFM fell 1.7% yesterday on turnover of AED 584.7 mn. The index is down 2.6% YTD.

In the green: Al Mazaya Holding Company (+13.8%), National Industries Group Holding (+12.2%) and Depa (+5%).

In the red: Emaar Properties (-9.7%), National General Ins. (-5.9%) and Tabreed (-5.4%).

Over on the ADX, the index fell 0.8% on turnover of AED 1.1 bn. Meanwhile, Nasdaq Dubai was down 3.1%.