STAN CHOE, AP business writer
New York (AP) -Wall Street has sinked in stock markets around the world due to concern that President Donald Trump’s tariffs may punish, so Wall Street between sharp losses and more modest losses on Monday. It shakes.
The S & P 500 fell 0.9 % in the afternoon after the Asian and European index recorded worse drops. Dow Jones’s industrial average was 155 points (0.4 %) as of 1:11 pm in the eastern time, and Nasdaq Composite was 1.4 % lower.
The US stock market is going smoothly for worse losses, and Dow decreased by 665 points immediately after the start of transactions, and was worried about how much pain of US companies for tariffs. Some of the heaviest losses are big technology and other companies that may be the most damaged by a higher interest rate that could eventually occur from US tariffs announced in Canada, Mexico, and China. I did.
However, President Mexico, President Claudia Sheinbaum, stated that after a conversation with Trump, the US stocks had been saved after a month. 。
The ultimate fear is that Trump’s tariffs raised the price of all kinds of invoices in food, electronics, and US households, and have peaked in the United States, which has declined most of the summer. It is applying upward pressure. Stubborn or accelerated inflation can prevent the federal preparation system from reducing interest rates.
Many of Wall Street wanted to discuss Trump’s tariff through the presidential election campaign was exactly the story, and the opening point for negotiations with US trading partners. Trader came on Monday morning, thinking that Trump had continued, raising fears of trade wars that could damage the economy around the United States, including the United States.
As a result, traders immediately expected the federal preparation system to reduce interest rates provided this year. The decline in interest rates can encourage US employers to hire more workers, and at the same time expand their investment prices, but negative aspects can give more fuel by inflation. is.
“I may feel the latest and most felt the trade war because I live in the Midwest,” said Bry Angn Jacobsen, Chief Economist for Annex Wels Management. “Our refiner cannot be easily switched from Canada crude oil.”
The crude oil price shook rapidly on Monday. Benchmark’s US barrel price surpassed $ 74.50 in the morning, and then returned to $ 72.58 after Mexico announced a suspension of tariffs.
Trump himself warned that Americans could feel “some pain” from tariffs. He also said on Sunday night that imported taxes would probably occur in the European Union and probably the UK.
Some of the Wall Streets remain skeptical about how long Trump is paying attention to the stock market. According to Solita Marcelli, the highest investment in Ubs Global Wealth Management.
Contellation Brands, a company that sells Modero beer and Corona beer in the United States, has decreased by 2.5 %. Best Buy, which sells electronic devices made around the world, has lost 3 %. Brown formers, which sell Jack Daniel and other alcohol in Canada, have decreased by 2.5 %.
Instead of stocks and ciphers, investors have moved to long -term US government bonds, which are considered as part of the safe investment as possible. The rally of the resulting price promoted the Ministry of Finance’s surrender.
The Yield of the Ministry of Finance has decreased from 4.55 % to 4.52 % on Friday.
This is at least temporarily due to the increase in yields of the Ministry of Finance, which temporarily shaked Wall Street in recent months. The yield was partially rising to the concerns of such tariffs from Trump and the result of higher interest rates.
The Junior Treasury yields rose to Monday due to the declining expectations for the Fedb of the Fed. The Yield of the Ministry of Finance has risen from 4.21 % to 4.24 %.
Higher yields put pressure on all kinds of investment, especially the most expensive stocks.
As a result, companies such as NVIDIA and other winners of the artificial intelligence boom are spotlighted. NVIDIA fell 3.4 % and was one of the heavy weight of S & P 500.
These AI superstars were under pressure last week after saying that Chinese emerging companies have developed a large -scale language model that can perform as well as US rivals. There was no need to use the top flight chip.
Trump’s tariffs appeared on a central stage in a week when other events usually take a spotlight, including a report on Friday, which shows the number of workers hired last month. This week, many interest reports are planned from alphabets, Amazon, and other very influential companies.
Overseas stock markets decreased 1 % in London, 1.2 % in Paris, and 1.4 % in Frankfurt. In Asia, Korean KOSPI sinks 2.5 %, and Japan’s Nikkei 225 fell 2.7 %.
AP business writer Matt OTT and Yuri Kageyama have contributed.
Initially issued: February 3, 2025 10:15 AT
