Global stock market today: Dow Jones futures drop; How Trump tariffs can affect US stock market? | Einsmark news

The global stock market today: On the expected lines, US stock futures dropped sharply on Wednesday after President Donald Trump announced global reciprocal rates- it is feared that a major trade war is caused. Dow Jones futures dropped about 1.5 percent after tariff announcements, reflecting the market’s nervousness about the possible economic outage of Trump’s tariff movements. Meanwhile, Major Wall Street indices ended on April 2 before US President Donald Trump’s reciprocal tariff announcements in the hope that rates would be softer and that there would be countries and product-specific exclusions. Nasdaq closed 0.87 percent higher, while S&P 500 and Dow Jones climbed 0.51 percent and 0.62 percent respectively. Trump has announced rates on all major US trading partners, including China, European Union, Taiwan, Japan and India. He said he will effectively impose a 10 percent baseline tariff on all imports to the US on April 5 and higher duties on some of the country’s largest trading partners. Follow all Donald Trump tariff announcements here, Trump said the rates would not be fully reciprocal, but about half of what they are. “We’ll load them about half of what they are and we load. So the rates will not be a full reciprocity, “he said. Trump imposed 26 percent reciprocal rates on India, 34 percent on China, 20 percent on the EU and 24 percent on Japan. Besides, he also confirmed his plan to 25 percent rates on cars, a move that could significantly affect countries such as Japan and Korea. Trump tariffs: How can it affect US markets? The market can see an immediate negative response to tariff announcements, as indicated by Dow Jones term, due to concern that tariffs could increase inflation in the US and weigh economic growth. Higher inflation could also lead to delayed rate cuts by the US Federal Reserve, which is another important negative for the markets. Some experts believe the rates are higher than expected, which can make the market sentiment disappear. “Markets expected good, bad or an ugly scenario on rates, and this reciprocal rate leans more in the ugly scenario, which means the total amount of tariff when your average is slightly higher than expected,” Reuters reported that Brian Mulberry, portfolio manager at Zacks Investment Management said. However, Trump has announced reciprocal rates at only half of the rate that other countries impose on US products, leaving room for negotiation rather than retaliation. Investors will focus on whether US trading partners have announced counter-rates. It can cause a deeper trade war, which will significantly affect the world’s growth inflation dynamics. “Markets will continue to struggle with the speed at which tariff details are changing, as well as the ultimate result of the rates themselves,” said Northlight Asset Management investment officer Chris Zaccarelli. “The silver lining for investors may be that it is only a starting point for negotiations with other countries, and ultimately the tariff rates will generally fall – but for the time being traders first shoot and ask questions later,” Zaccarelli said. (With input of Reuters) Read all market -related news here Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or brokerage companies, not coin. We advise investors to check with certified experts before making investment decisions, as market conditions can change quickly, and conditions can vary. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. Business NewsMarketsstock MarketsGlobal Stock Market Today: Dow Jones Futures Declures; How Trump tariffs can affect US stock market? More less