New York: World stock markets have experienced significant losses following the re-election of US President Donald Trump, with his administration's tariff policies inciting a wave of economic uncertainty.
According to Anadolu Agency, the period since Trump's second inauguration has been marked by heightened volatility in global stock markets, largely driven by tariff announcements targeting major trading partners such as Mexico, Canada, China, the EU, and Vietnam. The imposition of sectoral tariffs on products like steel, aluminum, and automobiles has further exacerbated concerns. Despite an initial rally following Trump's election victory, the market's positive sentiment was short-lived, as fears of inflation and recession took hold.
Over nearly 80 days since taking office, Trump has consistently threatened the implementation of tariffs, leading to increased market instability. The tariff rates, which became more definitive in April, put significant pressure on China and Europe. In response, both China and the EU initiated retaliatory measures, with China matching US tariffs and the EU imposing taxes on specific product groups amounting to over $20 billion. Although Trump announced a 90-day suspension for certain countries, excluding China, the uncertainty continued to weigh on investor confidence, driving up gold prices as a safe haven.
From January 20 to April 10, major stock markets faced substantial volatility. The Asia Dow fell by approximately 9%, Japan's Nikkei 225 index declined by 15.1%, and Hong Kong's Hang Seng Index saw a modest rise of 1.1%. China's Shanghai Stock Exchange dropped 3%, while India's Sensex index decreased by 4.7%. In Europe, Britain's FTSE100 index lost 9.6%, Germany's DAX index fell by around 5%, and France's CAC 40 index dropped 9.2%, with the pan-European STOXX 600 index also declining by 8.6%.
In the US, the Dow Jones Industrial Average plunged 13.7%, the S and P 500 slipped 16.3%, and the Nasdaq Composite fell by 21%. The VIX Index, known as the "fear index," surged by 170%, reflecting the heightened market anxiety.
Shares of the "Magnificent Seven" companies continued their downward trend, with electric vehicle giant Tesla experiencing the steepest decline, falling 38% from January 20 to April 10. Despite Elon Musk's significant financial support for Trump's election campaign, Tesla's shares suffered under the new administration's policies. Nvidia followed with a 23.5% loss, while Google's parent company Alphabet fell by 23.2%. Amazon, Meta, Apple, and Microsoft also registered notable declines.