ABD Stock Market Experiences Turbulence: Trump Urges to Buy
Tensions in the global markets due to tariffs persist. The escalating tension between China and the US has supported a negative atmosphere in the markets. Stocks continue on a selling trend while gold experiences a sharp rise. Oil hit its lowest level in 4 years. US President Trump stated, “Stay calm, everything will fall into place. It’s a great time to buy.”
The tariff measures by US President Donald Trump have fueled high risk perceptions in the markets. Tariffs exceeding 10% and affecting about 60 countries have come into effect. Uncertainties regarding the economic tension between the two countries have increased following the recent tariff actions towards China by the US administration. After Trump announced tariffs on April 2, many countries showing openness to negotiations had brought optimism and supported the recovery momentum in the markets. The announcement of the increase to 104% in US tariffs on Chinese goods after China’s retaliation has once again raised global risks.
The new retaliation from China has intensified the tension to maximum levels. China’s Ministry of Finance disclosed that the additional tariff rate to be imposed on US goods would be 84%.
TRUMP’S CALL TO BUY US President Trump used words like, “Stay calm, everything will fall into place. The US will be bigger and better than ever.” In a post shared on his Truth Social account, Trump stated that it’s a great time to buy.
US STOCK MARKET FLUCTUATED Indexes on the New York Stock Exchange began with a decline. At the opening, the S&P 500 index lost 0.35%, the Nasdaq index lost 0.45%, and the Dow Jones index lost 0.59%.
Following the opening, purchases accelerated in the indexes leading to a turnaround into the green. The S&P 500 index gained 0.81%, the Nasdaq index gained 1.62%, and the Dow Jones index gained 0.28%.
GOLD ROSE, OIL FELL The price of gold per ounce saw an increase of nearly 3%, reaching $3,070. In the free market, the price of a gram of gold climbed up to 3,823 Turkish Liras.
The barrel price of Brent crude oil plummeted by almost 7%, dipping below $60. Thus, oil continued to be priced at its lowest level since September 2021.
EUROPEAN STOCK MARKETS PLUNGED
After China’s retaliation decision, sales accelerated on European stock exchanges. In Germany, the DAX 40 dropped by 3.84%, in France, the CAC 40 index fell by 3.6%, in the UK, the FTSE 100 index declined by 3.61%, and in Italy, the FTSE MIB 30 index decreased by 3.87%.
BOND YIELDS INCREASED While the bond markets trended towards sales, the US 10-year bond yield inched up to 4.51%, extending its rise over the past 3 trading days. Currently, the US 10-year bond yield stands at 4.49%. The dollar index also declined by 0.7%, reaching 102.1.
ASIA GAVE UP GAINS After a 1.2% decline, the CSI300 index in China rose by 0.32%. Hong Kong’s Hang Seng index dropped by 3.1%. Following a 6% increase yesterday, Japan’s Nikkei index recorded a 4.15% decline today, abandoning the expectations of a trade deal.
