{"id":132826,"date":"2025-04-07T14:17:03","date_gmt":"2025-04-07T14:17:03","guid":{"rendered":"https:\/\/quixnet.net\/wpinstance\/wall-street-drops-20-below-its-record-and-markets-reel-worldwide-as-trump-digs-in-on-his-tariffs-ap-news\/"},"modified":"2025-04-07T14:17:03","modified_gmt":"2025-04-07T14:17:03","slug":"wall-street-drops-20-below-its-record-and-markets-reel-worldwide-as-trump-digs-in-on-his-tariffs-ap-news","status":"publish","type":"post","link":"https:\/\/quixnet.net\/wpinstance\/wall-street-drops-20-below-its-record-and-markets-reel-worldwide-as-trump-digs-in-on-his-tariffs-ap-news\/","title":{"rendered":"Wall Street drops 20% below its record and markets reel worldwide as Trump digs in on his tariffs – AP News"},"content":{"rendered":"

Copyright 2025 The Associated Press. All Rights Reserved.
Asian shares nosedived on Monday after the meltdown Friday on Wall Street over U.S. President Donald Trump\u2019s tariff hikes and the resulting backlash from Beijing. (AP Video by Ayaka McGill and Taijing Wu)
The New York Stock Exchange is seen in New York, Wednesday, Feb. 26, 2025. (AP Photo\/Seth Wenig, File)
Asian shares nosedived on Monday after the meltdown Friday on Wall Street over U.S. President Donald Trump\u2019s tariff hikes and the resulting backlash from Beijing. (AP Video by Ayaka McGill and Taijing Wu)
The New York Stock Exchange is seen in New York, Wednesday, Feb. 26, 2025. (AP Photo\/Seth Wenig, File)
The New York Stock Exchange is seen in New York, Wednesday, Feb. 26, 2025. (AP Photo\/Seth Wenig, File)
NEW YORK (AP) \u2014 The losses are only worsening for financial markets worldwide as worries rise Monday about whether President Donald Trump\u2019s<\/a><\/span> trade war<\/a><\/span> will torpedo the global economy.
The S&P 500 was down 3.8% in early trading, coming off its worst week since COVID<\/a><\/span> began crashing the global economy in March 2020. The index, which sits at the heart of many investors\u2019 401(k) accounts<\/a><\/span>, has lost more than 20% since setting a record less than two months ago<\/a><\/span>.
If the S&P 500 finishes the day below that mark, it\u2019s a big enough drop that Wall Street has a name for it. A \u201cbear market\u201d signifies a downturn that\u2019s moved beyond a run-of-the-mill 10% drop<\/a><\/span>, which happens every year or so, and has graduated into something much more vicious.
The Dow Jones Industrial Average was down 1,343 points, or 3.5, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 4.2% lower.
The financial pain once again hammered investments around the world<\/a><\/span>. Stocks in Hong Kong<\/a><\/span> plunged 13.2% for their worst day since 1997. A barrel of benchmark U.S. crude oil briefly dropped below $60 for the first time since 2021, hurt by worries that a global economy weakened by trade barriers will burn less fuel. Bitcoin<\/a><\/span> sank below $78,000, down from its record above $100,000 set in January, after holding steadier than other markets last week.
It\u2019s all a slap in the face to Wall Street, not just because of the sharp losses it\u2019s taking, but because it suggests Trump may not be moved by its pain. Many professional investors had long thought that a president who used to crow about records reached under his watch would pull back on policies if they sent the Dow reeling.<\/p>\n

On Sunday Trump told reporters aboard Air Force One that he does not want markets to fall. But he also said he wasn\u2019t concerned about a sell-off<\/a><\/span>, saying \u201csometimes you have to take medicine to fix something.\u201d
Some investors are holding onto hope that Trump may lower his tariffs<\/a><\/span> after negotiating with other countries<\/a><\/span>, and Trump said Sunday that he\u2019s heard from leaders \u201cdying to make a deal.\u201d A drop in tariffs relatively soon could help avoid a recession, but whether that can happen is still uncertain.
Trump has given several reasons for his stiff tariffs, including to bring manufacturing jobs back to the United States, which is a process that could take years. Trump on Sunday said he wanted to bring down the numbers for how much more the United States imports from other countries versus how much it sends to them.
\u201cThe recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,\u201d JPMorgan CEO Jamie Dimon wrote in his annual letter to shareholders Monday. He\u2019s one of the most influential executives on Wall Street. \u201cWhether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.\u201d
Trump\u2019s tariffs are an attack on the globalization that\u2019s remade the world\u2019s economy, which helped bring down prices for products on the shelves of U.S. stores but also caused production jobs to leave for other countries.
It also adds pressure on the Federal Reserve<\/a><\/span>. Investors have become nearly conditioned to expect the central bank to swoop in as a hero during downturns. By slashing interest rates to make borrowing easier for U.S. households and companies, along with other more untraditional moves to juice the economy, the Fed helped the U.S. economy recover from the 2008 financial crisis, the 2020 COVID crash and other bear markets.
But the Fed may have less freedom to act this time around because the conditions are so much different. For one, instead of a coronavirus or a system built up on too much belief that U.S. home prices would keep rising, this market downturn is mostly because of economic policy from the White House.
Perhaps more importantly, inflation<\/a><\/span> is also higher at the moment than the Fed would like. And while lower interest rates can goose the economy, they can also put upward pressure on inflation. Expectations for inflation are already swinging higher<\/a><\/span> because of Trump\u2019s tariffs, which would likely raise prices for anything imported.
\u201cThe idea that there\u2019s so much uncertainty going forward about how these tariffs are going to play out, that\u2019s what\u2019s really driving this plummet in the stock prices,\u201d said Rintaro Nishimura, an associate at the Asia Group.
Nathan Thooft, chief investment officer and senior portfolio manager at Manulife Investment Management, said more countries are likely to respond to the U.S. with retaliatory tariffs. Given the large number of countries involved, \u201cit will take a considerable amount of time in our view to work through the various negotiations that are likely to happen.\u201d
\u201cUltimately, our take is market uncertainly and volatility are likely to persist for some time,\u201d he said.
Kurtenbach reported from Bangkok. McHugh reported from Frankfurt, Germany. Associated Press writers Ayaka McGill, Paul Harloff, Matt Ott and Jiang Junzhe contributed. <\/p>\n

Copyright 2025 The Associated Press. All Rights Reserved.<\/p>\n

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Copyright 2025 The Associated Press. All Rights Reserved.Asian shares nosedived on Monday after the meltdown Friday on Wall Street over U.S. President Donald Trump\u2019s tariff hikes and the resulting backlash from Beijing. (AP Video by Ayaka McGill and Taijing Wu)The New York Stock Exchange is seen in New York, Wednesday, Feb. 26, 2025. (AP Photo\/Seth […]<\/p>\n","protected":false},"author":1,"featured_media":132827,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[10],"tags":[],"class_list":["post-132826","post","type-post","status-publish","format-standard","has-post-thumbnail","category-world","entry"],"_links":{"self":[{"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/posts\/132826","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/comments?post=132826"}],"version-history":[{"count":0,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/posts\/132826\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/media\/132827"}],"wp:attachment":[{"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/media?parent=132826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/categories?post=132826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quixnet.net\/wpinstance\/wp-json\/wp\/v2\/tags?post=132826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}