From Morningstar: 2025-04-03 03:53:00

President Donald Trump’s new tariffs on dozens of countries caused stock markets to plummet, with S&P 500 futures predicting a 3% drop. Asian markets also fell, with Japan’s Nikkei 225 down over 3%. European stocks opened lower too. In currency markets, the US dollar weakened while gold hit record highs below $3,200. Bond prices rose as investors sought safe havens, with the US Treasury yield falling 14 basis points to 3.82%.

Economists warn that the tariffs could increase the risk of recession and reduce GDP growth forecasts by 0.5% in 2025 and 2026. The uncertainty created by the tariffs could have a negative impact on spending and long-term investment. Stock markets reacted negatively to Trump’s announcement, with companies like Apple, Nike, Amazon, and Gap seeing steep declines in after-hours trading.

The bond market also felt the impact, with US Treasury yields falling sharply. Investors turned to US government bonds as a safe haven. The tariffs may push the Federal Reserve to consider looser monetary policy, with the possibility of interest rate cuts sooner than expected. However, the tariffs could also contribute to renewed inflation pressures, complicating the Fed’s decision-making process.



Read more at Morningstar: Stocks Plunge as Trump’s Tariffs Threaten to Hurt…