Stocks in the U.S. plummet due to renewed lockdown worries
U.S. Stocks See Decline After Trade Tensions Escalate
U.S. equities took a tumble on Friday, with major indices such as the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite witnessing a significant drop in value. The downturn was primarily triggered by renewed concerns over global lockdowns and uncertainty surrounding trade policies.
President Donald Trump's threat to impose tariffs on imports from the European Union and Apple affected investor confidence. The imposition of a 50% tariff on EU imports starting June 1, as well as a 25% tariff on Apple if it fails to manufacture iPhones in the U.S., added to the market's unease.
- Dow Jones Industrial Average: Among the hardest hit, the Dow endured significant losses, falling 0.88 percent to 27,657.42 points.
- S&P 500: In tandem, the S&P 500 tumbled by around 1.20 percent, with its preexisting losing streak continuing before a slight recovery in subsequent days.
- Nasdaq Composite: Given its heavy reliance on technology stocks like Apple, the Nasdaq Composite also experienced a retracement, falling by 1.31 percent.
Other tangible assets also reacted to the volatile market conditions. Gold, often regarded as a safe-haven asset, saw an uptick as investors sought refuge from the uncertainty. Gold futures closed at $1,950.65 per ounce, marking a 0.41 percent increase over the previous day. In equivalent terms, gold prices amounted to €52.93 per gram.
The European common currency showed minimal appreciation on Friday evening, with one euro worth 1.1849 US dollars, representing a nominal 0.03 percent increase.
After the initial dip, the stock market demonstrated signs of recovery as President Trump postponed the implementation of tariffs on the EU until July 9, contingent upon ongoing trade negotiations. This move helped stabilize the markets, resulting in a rebound for the S&P 500 and Nasdaq Composite.
Finance professionals, concerned about the volatile stock-market, began considering alternative investments for their businesses due to the uncertainty caused by renewed trade tensions. The potential for large losses in U.S. equities and the uncertain outcome of trade negotiations could lead to investors looking towards other ventures, such as the gold market, for safer options.
