- US stocks are ready to continue their free fall fall As futures signaled more fear of President Donald Trump's tariffs. Administrative officials and Trump themselves signaled on Sunday that they would not return from their aggressive attitude. Meanwhile, the inflation report is payable at the end of this week as well as bank earnings.
Wall Street remained on Sunday evening in the fear of President Donald Trump's tariffs, because futures pointed to other steep losses.
Dow Industrial average futures Jones dropped by 1,302 points, ie 3.3%, while the futures S&P 500 dropped by 3.9% and Nasdaq Futures dipped 4.9%. This is followed by a devastating week that has seen the worst selection from the first days of the Covid-19 pandemie.
The ten -year revenue of the Ministry of Finance dropped by 8.5 basis points to 3.906% and US oil prices dropped by 3.7% to $ 59.72 per barrel.
On Wednesday, Trump announced a minimum rate of 10%and higher rates for 57 economies such as China (34%), the European Union (20%) and Japan (24%). Fitch's evaluation It is estimated that an effective rate of tariffs could hit an average of 25% – the highest in more than 115 years.
Former Minister of Finance Larry Summers sent caution in X post On Sunday and says there is a very good chance of a larger market turbulence similar to what was seen on Thursday and Friday.
These sessions have been the fourth largest two -day decline over the last 85 years, the summer said. Selloff erased about $ 6 trillion on a market cap.
“A drop of this size indicates that it is likely that there will be problems ahead of us and people should be very careful,” Summers wrote.
Meanwhile, Trump's administration and the president defended the tariffs.
“I don't want anything to come down, but sometimes you have to take medication to fix something,” Trump told reporters when he asked about the market routine.
He pointed to the US trade deficit with China and said he was willing to conclude an agreement, “but he has to resolve his excess.”
Previously said the director of the National Economic Council Kevin Hassett ABC News The fact that more than 50 countries addressed the White House to negotiate tariffs.
In the meantime, however, the Minister of Trade Howard Lutnick said that tariffs will remain and will not be postponed. While at least 10% of the tariff entered into force early on Saturdays, individualized doses will go to the place on Wednesday.
“They will definitely stay on the spot for days and weeks,” he said. CBS.
In response to Trump's sweeping tariffs, Jpmorgan Now he sees the recession, with GDP decreasing by 0.3%this year. However, Finance Minister Scott Bessnt said that on Sunday there was no recession and the composition called the stock by a short -term response.
“One thing I can tell you as the Secretary of the Treasury what I was very impressed for is the market infrastructure that we had a record volume on Friday. And everything works very smoothly, so American people can do great comfort,” he said, “he said,” NBC.
Bessnt also gaveNo hint that Trump will retreatOf these aggressive tariffs.
On Friday, chairman of the Jerome Powell Federal Reserve System warned that sweeping tariffs could increase inflation and cooling expectations for immediate interest rates.
The markets will receive an update of inflation on Thursday, when the report on the consumer prices index will be released, providing an insight into the place where inflation was directed before the last tariff intervention.
In addition, the earnings season for the first quarter will start this week as JPMORGAN, Wells Fargoand Black -shin Report on Friday.
The commentary of the highest executives about tariffs and their predictions on how their companies will affect them will be under special control.
This story was originally listed on Fortune.com
