United States of Americas economy is expected to reach $51.5 trillion by 2075. (Flickr)
The US stock market experienced another strong sell-off on Thursday as President Donald Trump’s tariffs combined with economic uncertainty pushed the market down. A 1.8 percent decrease in the S&P 500 brought its downward movement back after investors recovered some of its previous weeks' severe loss during yesterday's mini-bounce.
The Dow Jones Industrial Average closed at the lower level by 427 points reflecting a 1% decline while the Nasdaq composite ended with a 2.6% drop which placed it below its previous record value set in December by more than 10%. Stock prices continued downward even though President Trump implemented a temporary exemption of 25% border tariffs for goods from Mexico and Canada last Thursday. The day following his announcement of specific production exemptions for automakers did not generate similar stock market increases.
The market maintains hope that Trump uses trade tariffs as bargaining tools rather than establishing permanent trade policy so he might steer clear of the disastrous consequences of an economic conflict that erodes markets and heightens price levels. President Trump has continued his push for other tariffs despite postponing the Mexico tariffs which were supposed to start on April 2. The increasing number of confusing tariff modifications creates rising unpredictability in the market. Trump declared on Monday that no further talks were possible to reduce Mexican and Canadian tariffs which started on Tuesday.
Yung-Yu Ma who serves as chief investment officer at BMO Wealth Management doubts that these exemptions help to clarify overall market uncertainties despite existing at present. Businesses remain cautious in their current operations because they need more clarity about the evolving tariff regulations. Businesses in the US currently face “chaos” due to Washington's ongoing political uncertainties and consumers deal with inflation concerns stemming from the implemented tariffs.
Big retailers recently showed signs that US consumer spending power is reaching its limits during the fourth quarter.Macy’s announced revenue that fell short of analyst predictions but exceeded profit predictions. The company made a forecast for 2025 profit which turned out lower than predicted by market experts. Its shares fell 0.7 per cent.The AI boom leader Nvidia dropped 5.7 percent as Broadcom experienced a 6.3 percent decline before they delivered their earnings numbers.
The S&P 500 experienced heavy devaluation from these two weighty Tech giants which supported Wall Street's continuous rise to records through years. The remarkable performance growth of Nvidia since 2023 overwhelmingly surpassed nine-hundred-and-twenty (820% percent) but some critics argued that prices exited reasonable levels. The development of Chinese AI technology poses threats to these companies because DeepSeek stated it would not utilize industry-leading chips.
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