Fee "Liberation Day" that destroys US Share Contracts

The S&P 500 futures scored a drop by more than 3% on Wednesday night, after US President Donald Trump announced a wide package with customs on the most important United States trading partners, which increased the possibilities to enter into a comprehensive trade war that could push the US economy to stagnation. The S&P 500 index decades fell by 3% at about 18:01, Trump said that the United States would impose a minimum fee of 10% on all imports, along with higher definitions of about 60 countries having a major trade deficit with America. China will face customs duties by 34%, while the European Union will be imposed at 20%, and Vietnam is 46%. Evecor estimates the average rate of the probable fee of 29%. Recommendation -shares have reduced shares of companies related to sectors that will be severely influenced by the new round of fees, sharply in extensive trading. The shares of “Nike”, “gap” and “lulmon”, which depend on the goods of Vitenam, dropped at a rate of no less than 7%. As for the company “Apple”, the supply chain of which relies a lot on China, its shares fell 6.9%. The shares of chips manufacturers such as “Inviteia” and “Advands Micro Device”, as well as multinational companies such as “Catperellar” and “Boeing”. “In the short term, it’s bad,” said Kim Forest, the investment officer of the Bouquet Capital Partners. Economists have warned for weeks that high customs lights could lead to high inflation and employment damage in the United States before any potential benefits appeared. Throughout Wall Street, companies have increased the possibilities of recession, reducing their goals for US stock indicators this year. “There is a multi -phase game and the ends game”, adding: “It’s very negative at the world level, because we don’t know the type of game playing. The fluctuations should be higher, and most people will now take a defensive position.” Trump has been preparing wide fees on many main trade partners of America since his re -election in November, but for only five months he offered a non -conquest set of ads, declines and postponement, which left Wall Street to swing from one title to another. This referred to the announcement on April 2 since February. Meanwhile, the countries that represent most of exports to the United States have planned retaliation measures. The European Union is working on a package of possible emergency measures to support parts of its economy that can be subjected to the strictest strikes, according to people who are familiar with the matter. Canada Prime Minister Mark Carney said he was ready to go forward to impose additional retaliation. Trump surprised investors last week by announcing a 25% fee on all car imports, adding to customs duties to many industrial metals. At Wednesday’s announcement, a basic fee of 10% worldwide, with higher rates from specific countries, including 46% on Vietnam, 34% on China, 24% on Japan and 20% on the European Union. What the goods are compatible with the trade agreement with Canada and Mexico, they are exempt from the final round of the fees. A decrease from a standard level to a preliminary recovery of the “S&B500” index pushed to a record level in February caused the uncertainty due to the management of the administration in trade policy, as well as indications that inflation is still highly high and that the economy is refusing the shares. The index fell by 10% during 16 trading sessions, which is the seventh fastest decrease of this size of the highest level, according to data dating back to five decades. The equity futures are subject to the Chicago commercial stock exchange boundaries, which prevent gains or losses from being more than 7% during the night trading. Futures will continue in the night trading, but within a series between 5315.5 and 6109 points. In comments written before Trump’s announcement of drawings from the White House Flower Garden, a group of Wall Street said he expected more pain after the markets scored his worst quarter since 2022. Institutions such as Goldman Sachs and Bank of America have warned that policies, regardless of details, will deepen sales in stock. Three of the most optimistic analysts in Wall Street have reduced their expectations for the S&B500 for this year, although they still see that the index will end at a higher level in 2025. Economic data expected without clarity on the purpose of the fees, it was difficult for traders to praise the risks, something that many people do not see will soon change due to the history of the administration in issuing statements and then quickly withdraw it or change its position. Don Kalkani, the investment officer in “Mercer Advisers”, said: “The state of uncertainty, by nature, is not an enforceable information.” He added: “This is a case you can’t measure, and you don’t know where the administration is going.” While “Wall Street” is the effects of trading, investors also prepare for a set of economic data for the month of March, including unemployment benefits on Thursday and not Agricultural Works Report. The profit season, which starts with major bank reports in mid -April, will also have a major impact. There are already indications that businesses are preparing for the effects of customs duties, as US companies announced the lowest level of shares since October 2020, after a 2024 -year -old record year announced to the shares, and asked questions about one of the most important stock market pillars. “You will get a lot of prescriptions about what companies are facing, either consumers or with regard to their capitalist spending,” said Tony Roth, investment officer at Wellington Trust Investment Advisers, adding: “This will be the next step to be monitored.”