US Stocks Plunge as Trade War Escalates
US stocks ended the week sharply lower following escalating tensions in the trade war, with China retaliating against President Trump's new tariffs. China imposed a 34% additional tariff on all US imports in response to Trump's similar measures earlier this week, CE Report quotes Anadolu Agency
The tariffs, effective next Thursday, are set to impact all US goods entering China. China condemned the US tariffs as "bullying" and a violation of international trade rules.
Trump reacted by claiming China had "panicked" in its response. Meanwhile, Federal Reserve Chair Jerome Powell warned the tariffs would lead to higher inflation and slower growth, but stressed the Fed would remain cautious in its policy decisions.
On the economic front, the US added 228,000 jobs in March, exceeding expectations, while the unemployment rate rose to 4.2%.
The stock market saw heavy losses, with the Dow falling 5.5%, the S&P 500 down 6%, and the Nasdaq dropping nearly 6%. The total market loss exceeded $6 trillion over two days, marking a significant downturn since Trump's presidency.
The VIX index, a gauge of market volatility, spiked by 51%.
