US stocks faced significant declines on Monday following President Donald Trump’s imposition of tariffs on key trading partners, sparking fears of an escalating trade war.
The S&P 500 dropped 1.4%, while the Dow Jones Industrial Average lost 435 points, reflecting a broader sell-off that affected global markets, including steep losses in Asia and Europe.
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Investors are increasingly concerned about potential inflationary pressures from the tariffs, which could lead to higher consumer prices and complicate the Federal Reserve’s plans for interest rate cuts.
The uncertainty surrounding retaliatory measures and the future of trade relations has left traders recalibrating their expectations for economic growth and interest rates.
Major sectors like technology, particularly companies reliant on cross-border trade, have seen significant impacts, with stocks like Nvidia experiencing hefty losses.
As the market grapples with these developments, many investors are seeking safety in government bonds, causing some Treasury yields to decline.
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