Opening the 7/4 session, all three key indicators of the US Securities simultaneously plunged along the world.
The S&P 500 index currently takes 3.3%. DJIA lost more than 1,220 points, equivalent to 3.1%. Nasdaq Composite takes 3.9%.
This development has been predicted. Global stock markets today are sold, due to the pessimistic psychological psychology of the investor after US President Donald Trump announced the reciprocal tax to more than 180 trading partners last week.
The DJIA index continuously lost points at the beginning of the 7/4 session. Graph: Reuters
In the past 3 sessions, S&P 500 takes 13%. This is the first time this has occurred since the financial crisis in 2008. If closing at this level, the S&P 500 will fall into the market price, when it drops 20% compared to the peak of February.
Nasdaq Composite also sinks deep in the price market, when investors increase the sale of technology shares to get cash. This index has decreased by 26% compared to the nearest peak.
The three main indicators of the US securities plummeted when opening the door. Graph: Reuters
Apple, NVIDIA, TESLA shares decreased by 5-7%. All three companies are large in China and are most influenced by the group when Beijing imposes Washington retaliation. Last weekend, the technology stock group led the market decline. In addition to technology, other stock codes like Boeing or Caterpillar – large exporters to China – also down nearly 6%.
Shares of sports costumes, such as Nike or Deckers Outdoor have decreased by more than 5%. Last week, these codes closed the price increase, after US President Donald Trump said he had talked to General Secretary To Lam.
In Asia, the Nikkei 225 and Topix (Japan) index decreased by 7.8%. Kospi (South Korea) closed the session decreased by 5.6%. In China, the stock market at the end of the session dropped sharply. The shanghai composite index closed by 7.3%. Hang Seng Index (Hong Kong) takes nearly 14%.
The selling momentum spreads to European countries, when the STOXX 600 index is 4.1%. DAX (Germany) takes 3.8%. Cac 40 (France) decreased by 3.8%. And FTSE 100 of the British stock market decreased by 4.2%. However, these reductions were narrowed compared to the beginning of the session.
Investors worry that the US import tax will drag the growth of both the world’s largest and global economy. Even so, US President Donald Trump did not appear to be afraid. On the Truth Social social network, he repeatedly posted a state of calling people “strong, brave, patient” with import tax, because “the result will be great” for the United States.
“Oil price decreases, interest rates decrease (the Fed is slow, so the interest rate is more reduced), the food price decreases, there will be no more inflation. The United States has been taken advantage of for a long time and now there will be billions of dollars per week from import tax … Make the great American country again,” he wrote.