US stocks plunged Monday morning, with global markets extending declines after President Trump signaled that his so-called “reciprocal” tariffs would remain in place for the foreseeable future.
The S&P 500 also fell 3.5%, entering bear market territory according to New York Post, while the Nasdaq 100 dropped 3.8%.
Investors had hoped that foreign nations would quickly negotiate with the US to avoid the full effects of Trump’s latest hefty tariffs, but those hopes were dashed as the tariffs remain in place.
This uncertainty, combined with fears of retaliation from trading partners, continued to weigh heavily on the markets.
Tariffs and Inflation Concerns
The economic fallout from Trump’s tariffs is raising concerns among economists that these new measures could further fuel inflation. With a baseline tax of 10% on all imports, and even higher rates for many nations, the risk of escalating inflation is growing.
As the market continues to struggle with the uncertainty of Trump’s tariff policies, investors are left waiting for some form of negotiation or policy change to restore confidence. Until then, volatility is expected to persist in the stock market.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/sp-500-fell-3-5-allegedly-entering-bear-market-territory/