Companies listed on Wall Street lost over three trillions of market value in one day, closing the worst day on the stock exchange since the Covid-19 pandemic in 2020. This is mainly the effect of customs duties on goods from around the world.
According to “Wall Street Journal”, the market value of companies listed on the New York stock exchange fell in one day by $ 3.1 trillion. The main indexes made declines by 4-6 percent: Dow Jones Industrial Average by 3.98 percent, NASDAQ – 5.97 percent, and S & P500 by 4.84 percent. In all cases, these were the worst one -day declines since 2020.
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The reason for the sale was announced by Donald Trump Already after closing the markets on Wednesday, duties on goods from all countries of the world, reaching from a minimum of 10 percent of 49 percent. In the case of the largest trading partners USAsuch as European Union and China The rates are to be 20 percent, and China is 34 percent.
Companies at Wall Street lost $ 3 trillion during the dayJustin Lane/PAP/EPA
The worst start of the presidency since Bush
High duties are also to cover products from Asian countries like South Korea, Japan, India, Vietnam Whether Bangladesh.
As a result, the largest declines were noted by companies consisting in production and materials from abroad, especially manufacturers of furniture, clothes and electronic equipment. Nike lost almost 15 percent of the value, GAP – 20 percent, Dell – 19 percent, Hewlett Packard – 14.6 percent, and Apple – 9.25 percent.
As Bloomberg records, Thursday declines mean that since the start of Trump's presidency, the share rate of the largest companies, S & P500 has fallen by 10 percent, which is the worst beginning of the presidency from George W. Bush, which covered power while cracking the “Internet bubble” at the turn of 2000 and 2001, when many new enterprises were banned.
Source of the main photo: Justin Lane/PAP/EPA