The chaos of the market resulting from the definitions is not over.
The US futures decreased on Sunday evening (6), after Plattal invaded the settlement of more than $ 5.4 trillion in the market value.
The procedures were scheduled to open in a strong decline on Monday (7), as the S&P 500 was placed on the edge of a low-20 % decrease in the market compared to its climax and a threat sign for investors and perhaps the public economy.
Futures decreased in Dow 1500 points, or 4 %. S&P futures decreased by 4.3 %, while the future of Nasdak decreased by 4.7 %.
The price of US oil decreased by more than 3 %, which led to less than $ 60 a barrel for the first time since April 2021.
Oil prices are free, such as Investors fear that definitions can dive into the global economy in stagnation This would undermine the demand for flights, transfers, transportation and travel – all activities that require fuel.
Bitcoin also joined the declines – Decrease 5.6 % to 78,736.93 USD. Bitcoin ascended More than 100,000 dollars after Trump’s electionHoping that this will help increase the support of encrypted currencies.
The huge declines in futures follow the worst period of work for two days in five years – From Pandemia.
The markets rejected the huge tariff system for President Donald Trump, some of which are I came into effect on Saturday morning (5) More rates will be issued on Wednesday morning (9).
China strongly took revenge on Friday (4), and imposed a 34 % tariffs on all American productsmore Fears of the trade war Increased and harmful.
“The brutal sales pressure should continue last week on Monday“The market tells us that investors are not yet clear about the effects of customs tariffs, revenge on customs tariffs and anxiety that economic growth can slow to complete the recession or recession,” said James Demirt, Director of Investment at Min Street. Street research.
A global tariff entered into force on Saturday after Trump signed an executive order earlier this week demanding The basic tax of all imports.
This announcement caused the cry of American business partners – allies and enemies – along with American companies, investors and consumers.
On Wednesday, the United States will impose The “mutual” definitions are much higher to nearly 90 countries that have the largest commercial imbalances with the United States.
Trump also put the tariffs on Carsand Steel and aluminumIn addition to 25 % rates on each other Canada and Mexico products.
More customs tariffs may also be on its way: auto parts must be valid on May 3. Trump also threatened wood prices, pharmaceutical products, copper and fine nicks, among other products.
Unique chaos
Fear of the recession on Wall Street in recent days. JPMorgan analysts said last week that the customs tariff will increase the taxes on Americans by $ 660 billion per year – the largest tax increase (far) in modern memory.
This will also lead to high prices, adding 2 % to the consumer price index, which is the American inflation index that has struggled to return to stability in recent years.
If Trump keeps huge rates, it announced on Wednesday, their unprecedented commercial policies will cause American and global economies in 2025, JPMorgan analysts said, which increased the risk of recession by 60 % on Thursday; While Goldman Sachs increased last week, the possibility of recession in the next 12 months to about 35 %.
Dow was closed in a correction area on FridayWith a decrease of more than 10 % compared to a maximum record in December – the first time that the index closed the correction for more than three years. Nasdaq was closed in a low market for the first time since 2022, with a decrease of more than 20 % from its top record in December.
And S&P 500 is about to low market. It has decreased by 17.4 % since its arrival to a historic rise on February 19, and is expected to open on Monday in the low market area.
Investors do not seem to calm the fact that Trump met leaders from different countries, and perhaps to close agreements that can reduce the definitions.
Trump must perform a A press conference with Israeli Prime Minister Benjamin Netanyahu On Monday afternoon, after a meeting, it must include a discussion on the definitions.
The markets have decreased because the tariffs can significantly increase prices for American companies and consumers. This is because importers pay the definitions, and not countries that issue goods targeting Trump.
Companies that import all goods or part of this cost usually pass to wholesalers and retailers, and finally consumers. Although some retailers who have strong controls in the supply chain may bear part of their cost, others will not be able to support such a strike.
Federal Reserve Chairman Jerome Powell admitted on Friday that the Trump tariff, which was much more aggressive than the central bank, Prices and economy will rise.
Powell said that the federal reserve was not in a hurry to reduce attention This was monitoring the impact of definitions on the economy.
The Tax Corporation said the apartment The intermediate American family will pay 2100 dollars a year for goods due to the definitions Global and great mutual mutual declared Trump on Wednesday.
She said that the average import tax in the United States will rise to 19 % this year, from 2.5 % last year – the highest rate since 1933.
Fitch Classes said the rate would increase more, Sending the effective tariff rate in the country to its highest level in more than a century.
As a result, net income for Americans will decrease by 2.1 % on average this year, said the Tax Corporation.
The good news, perhaps, is that the fall of the stocks has created some opportunities for purchase for investors. The procedures are negotiated at a historical price of 15 times the future profits forecast now.
This can help the markets to recover if investors believe that the procedures are coming.
“We are approaching the bottom,” said Demmer.
“The fact that the procedures have decreased significantly in these deep movements within the movements are a clear sign of fear -based random sales. When this happens, we tend to see a large gathering soon.”
With information from John Towfighi, from CNN Internetal
The commercial opening reduces Trump’s effect on Brazil? Understand
