S & P 500 slides into a correction area while Trump is commercial wars that disappear investors Stock markets
The US Securities Market Index, the stock market index in the United States, was closed in the correction zone on Thursday, where the fluctuations of commercial wars Donald Trump rocked investors.
The index closed more than 10 % a decrease from the February 19 summit, where Wall Street approaches the end of the second week of pressure.
The nasdaq compound, which focuses on technology, also closed the correction last Thursday, while DOW is less than 9 % from its peak in December.
On Thursday, after the leaders of the Canadian and the European Union reached the American definitions of steel and aluminum imports, the US president threatened with a new tariff of 200 % on European alcohol, in response to a 50 % tariff for the European Union on Bourbon’s US imports.
“This will be great for wine and champagne companies in the United States,” Trump wrote on the social truth.
This was the latest in the back between the United States and its main commercial partners after the US tariff by 25 % on all steel and aluminum imports on Wednesday. In response, Canada and the European Union put a tariff on US exports of a total of more than $ 40 billion.
Canadian and European leaders pledged not to retract Trump, even promising to slap more customs tariffs in response to any response. “We will not give in to the threats,” said Laurent Saint Martin, France’s Foreign Trade Minister, said. “Donald Trump escalates the trade war he chose to unleash.”
The administration has shown that it is ready to decline in some cases, at least temporarily. On Tuesday, Trump reflected plans to double the tariffs on steel and aluminum imports from Canada to 50 % after the Prime Minister of Ontario dropped the definition plans for electricity exports to the United States. Last week, Trump last the 25 % definitions that planned to put on all Mexican and Canadian imports until the beginning of April.
However, Trump and those within his administration have reduced concerns about the permanent effects that the definitions on the American economy will cause. US Treasury Secretary, Scott Bessin CNBC On Thursday, the administration focused on “long -term gains in the market and long -term gains for the American people.”
“I am not worried about a few fluctuations for three weeks,” said Pesin.
The US Securities Market witnessed a short moment of the postponement of Wednesday after the inflation report in February showed that the price increases were not as bad as expected. But the stocks began to decrease again after Canada and the European Union definitions put on US exports.
Amid the uncertainty about Trump’s commercial policies, the US Federal Reserve officials are expected to keep interest rates at their next meeting next week, and it is unlikely to improve feelings in Wall Street.