NEW YORK (KXXV) — Global financial markets are facing more significant losses as concerns mount about the impact of President Donald Trump's trade war on the world economy.
According to the AP, the S&P 500 dropped 3.8% in early trading, following its worst week since the pandemic hit in March 2020.
The index, a key measure for many investors' 401(k) accounts, has fallen over 20% since its recent record high just two months ago. If the S&P 500 finishes the day below that threshold, it would officially enter a "bear market," signaling a severe downturn beyond a typical 10% drop.
The Dow Jones Industrial Average fell 1,343 points, or 3.5%, while the Nasdaq composite dropped 4.2%.
The financial strain also impacted global investments. Stocks in Hong Kong plunged 13.2%, their worst day since 1997. U.S. crude oil briefly dipped below $60 per barrel for the first time since 2021, reflecting fears that a weakened global economy will reduce demand. Bitcoin fell below $78,000, retreating from its January record above $100,000.
This financial turmoil has raised concerns that Trump's policies are harming markets long-term, despite his statements on Air Force One that he isn't worried about the sell-off and believes "sometimes you have to take medicine to fix something." Some investors remain hopeful that Trump may reduce tariffs after negotiating with other countries, potentially preventing a recession, though that outcome remains uncertain.
While Trump has expressed little concern over the sell-off, some investors hope a tariff reduction could help prevent a recession.
