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Global stocks fell on Friday as Donald Trump’s latest tariff threat puts more pressure on markets already caught up in the massive sale of technology on Wall Street.
The Broad Stoxx Europe 600 fell by 0.5%, with DAX, which is home to many German exporters, down 0.6%, while the French benchmark CAC 40 index fell by 0.5%.
The market also fell across Asia, with Japan’s Japan 225 index losing 2.9%, Korea’s Kospi slides 3.4%, and Hong Kong’s Hangsen index fell 3.3%. Mainland China’s CSI 300 benchmark lost 2%.
This decline followed a bruise date in the US market as high-tech stocks fell in LEDs, with NASDAQ Composite down 2.8% and the S&P 500 down 1.6%, wiping out annual profits.
“The last day was painful for many investors. “Mohit Kumar, Jeffries analyst, said:
The S&P lost 2.5% this week, but US stocks were set at a small rebound on Friday. Futures tracking S&P 500 futures increased by 0.2%, while Nasdaq 100 futures rose 0.1% over the opening of the New York market.
Investors were blinded by the latest trade salvo from Trump on Thursday.
Despite the barrage of threat since taking office last month, Trump has only imposed 10% tariffs on Chinese imports, but there are signs that the ghost of a trade war has dented consumer trust in the world’s largest economy, the United States.
This month marked the biggest decline since August 2021, according to the Conference Committee’s Consumer Trust Index released this week.
Economic health concerns have been added to investors’ concerns over the assessment of the uplifting technology sector.
Chipmaker Nvidia, the biggest winner due to investor enthusiasm for artificial intelligence over the past two years, fell 8.4% after fourth quarter revenues broke analysts’ forecasts but still didn’t ignite the wider rally.
Nvidia has often made the wider markets more powerful than electrification power for US inventory for much of the past two years.
“Nvidia didn’t save the world,” said Mike Zigmont, co-head of trading at Visom Investment Group. “The results were great, but not as amazing as anyone would want to buy more stocks.”
Dutch chip-making equipment group ASML fell 2.3% in trade on Friday morning as high-tech sales spread across Europe.
Trump’s election victory in November has made US stocks high in hopes of the new administration enacting professional business economic policies, but the S&P 500 has recently slipped as it instead focuses on potential threats to the US economy.
Retailers are suddenly held by “Unese,” according to Vandatrack, a data company that monitors the flow of retail transactions, where retail investors who have frequently stepped in to buy stocks whenever the market declines.
“I think this is a healthy fix,” said Bank of America equity strategist Winnie Wu. “The market is always trying to price five years of stories in five days or five weeks.”
Retreats from high-risk assets have been ravaging cryptocurrencies these days. Bitcoin fell 5% on Friday, while Ethereum fell 7.1%.
The dollar rose 0.1% against the trading partner’s basket of currencies, increasing its profit of 0.8% on Thursday.
