Stocking crash! US markets lose billions through trade war!

Stocking crash! US markets lose billions through trade war!

Wall Street, New York City, USA - The US exchanges have now recorded a dramatic decline, which makes market participants in alarming unrest. The values of the big indices have fallen massively: the S&P 500 lost almost 4 % and fell to 5,486.48 points, while the Dow Jones Industrial Average decreased by 2.65 % to 41,107.82 points. The Nasdaq Composite, which fell to 16,834.75 points by 4.35 %, met particularly strongly. These developments are mainly due to the current US tariffs, which are considered triggered by market faults.

chief economist Thomas Gitzel described the situation as worse than many had previously feared. This is also reinforced by the announcements of countermeasures by the EU and China, which further heat up the global trade war. Bloomberg estimates that the loss of value in the S&P 500 is about $ 1.7 trillion. Companies with overseas production such as Apple are particularly affected, while retailers like Walmart suffer from the increasing pressure of Asian products.

correction on the markets

These massive losses are part of a higher -level tendency that has been observed for months. There was a sale on Wall Street, and the S&P 500 has lost a total of 8.6 %since its record high on February 19. A decline of more than 10 % would be considered a correction. The total value of the S&P-500 is now over four trillion less.

The problems in the markets are also reinforced by the uncertainties during Donald Trump's presidency. The president himself did not rule out that the United States could slip into a recession. These concerns are based on the trade conflicts with Canada, Mexico and Europe, which endanger the economic prospects of the United States. Peter Orszag, the CEO of Lazard, made it clear that these uncertainties are an enormous risk.

global effects and trade wars

The escalating trade wars between the USA and other countries have a significant impact on the global economy, which leads to increased production costs and increased uncertainty in international markets. Companies suffer from the grown import duties that affect their competitiveness. Consumers have to accept rising prices for imported goods, which reduces their purchasing power. The situation could result in long -term damage to global trade, especially for developing countries that are strongly dependent on them.

The trade conflicts of the past few months, especially between the USA and China, have far -reaching effects. Forecasts predict 0.5 % for China, for Germany -0.3 % and for the USA -0.2 % in economic growth. This illustrates how important it is for governments to take measures to prevent trade wars. Strategies such as bilateral conversations or the diversification of trading partners could help to alleviate the negative effects.

In the current market situation, it is crucial for companies to diversify the risks of their supply chains and to promote investments in research and development. Governments are invited to strengthen multilateral trade agreements and to support export diversification in order to bring more stability into the markets.

The current developments on the US exchanges and the dynamic location in the international markets show how fragile the economic climate has become. Disability and conflicts could continue to increase uncertainties, which could seriously endanger global trade.

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