There has been a huge decline in Europe and Indian markets from the US, which has increased fear and a terrible situation at the global level. For Wall Street, this week is considered to be the worst week after 2020. America’s stock market has broken about 10% in the last two trading sessions. Investors are scared by this situation.
Market experts say that even FII does not understand where to invest now. Meanwhile, investor Basant Maheshwari posted a post on the exup and wrote that America’s liberation day has now become justice day. He said that Trump’s work is not over yet. This gives a rigorous reminder of the waste of the historical property under the burden of the growing trade war. Maheshwari says that due to trade war, there is a possibility of further destruction.
Fear of trade war
According to a Business Today report, in less than 48 hours, US President Donald Trump took Tariff to the highest level in more than a century. In response, China imposed a 34% duty on all US imports, which increased the Global Trade War and the confidence of investors has been shaken.
5 trillion dollars clean in 2 days
During two days, the US market has become more clear than $ 5 trillion. Nasdaq fell more than 20% from its peak of December, causing a recession in the market. Since Trump came to power, the U.S. Equity Value has caused a loss of about 9 trillion dollars.
Other markets also did not remain untouched by this. Chip stock declined by 7%, oil declined by 10% and Brent crude reached a four -year low of $ 62 per barrel. The Philadelphia Semiconductor Index is now 40% below its highest level. The ‘Magnificent Consumption’ ETF has fallen by 10% in the worst week so far.
Federal Reserve also upset with Trump’s action!
Federal Reserve President Jerome Powell maintained a cautious stance citing “increased risk”, but has not taken any immediate action. He has said that there is a danger of increasing inflation from tariffs. In such a situation, the markets are now fully expecting the cut in four interest rates starting from June this year. Some traders hope that if the turmoil continues, the fed can take even more quick action.
Chance of recession increased
JP Morgan called it ‘the largest American tax growth since 1968’ and warned that the global recession is more likely. Barclays hopes that the US GDP will decline in the fourth quarter, while inflation will cross 4%. City has estimated a 1 percent GDP fall for both Eurozone and China.
Also read: The worst day in America after 2020, then disintegrated US market … recession!
Vix on five years high
VIX (Wall Street’s fear index) reached its highest level in five years. In Europe, Swiss bonds also went to negative for a short time, which is a rare indicator of deep market concern.
What will happen on Monday?
The market can also be affected on Monday, because many countries can release their policy on tariffs right now. Its impact can be seen in stock markets around the world including India.
(Note- Take the help of financial advisor before investing in any share.)