Seeing red again: Stocks plummet after White House says China tariffs are actually 145%
Stocks plunged a day after a historic gain. The White House confirmed China's tariff rate was higher than initially thought, at 145%.
Stocks plunged a day after a historic gain. The White House confirmed China's tariff rate was higher than initially thought, at 145%.
Global markets are reeling over President Donald Trump’s haphazard approach to tariffs and an escalating trade war with China. Stocks have been volatile, and an unsettling shift has emerged in the bond market.
Microchip Technology shares could remain on watchlists after tumbling 14% Thursday to lead chip stocks lower during a broad post-rally sell-off for U.S. equities. Monitor these important chart levels.
SINGAPORE (Reuters) -Global stocks fell and the dollar sank further on Friday, while a manic bond selloff took hold in a brutal end to the week of tit-for-tat worldwide tariffs that have fed fears of a deep recession and shaken investor confidence in U.S. assets. The anxiety has sparked a rush into safe havens, sending the Swiss franc soaring to a decade high against the dollar, and gold to a new peak after a brief but massive relief rally following U.S. President Donald Trump's move to temporarily lower tariffs on many countries. The selloff in U.S. Treasuries picked up pace during Asian hours, with the 10-year note yield rising to 4.45%, gaining about 45 basis points in the week, the biggest increase since 2001, LSEG data showed.
Already on Thursday, stocks were giving back a chunk of Wednesday's historic gain. Goldman Sachs says the tariff pause likely won't stem declines.
Wall Street was set to wrap up another week of tariff-fueled turmoil.
"The willingness of Retail investors to place confidence on market upside despite radical policy uncertainty has clearly paid off," JPMorgan said.
Tariffs remain in effect on Chinese goods, including batteries for electric vehicles and imported cars, analysts said.
A number of stocks fell in the afternoon session after stocks gave back some of the gains from the previous day as the White House clarified the tariffs on imports from China would add up to 145%, while the baseline 10% tariffs remained in place for all countries. This reminded markets that the global trade environment remained volatile, limiting the potential for sustained gains.
"With the 125% tariff on China, the 10% blanket tariff, the average tariff actually went up yesterday with the raise on China," Jeremy Siegel said.