Trump, tariffs and stock markets
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CBS News |
The Dow Jones Industrial Average plunged 1,679 points, or 4%, to close at 40,546.
BBC |
Shares slid again on Friday as markets continued to react to the uncertainty surrounding the economic impact of US tariffs.
MSNBC |
Donald Trump’s rollout of tariffs leading to widespread panic and uncertainty for American investors and consumers.
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Welcome to The Hill’s Business & Economy newsletter{beacon} Business & Economy Business & Economy The Big Story Dow plunges 2,231 points as Trump tariffs cause
All of this led to a huge run-up in stock prices, with one particular valuation metric reaching a level it only hit twice before since the 1950s, when the S&P 500 launched in its current form. So, as a whole, the market became more and more expensive over the past couple of years, leaving certain stocks trading at record levels.
The fortunes of the stock market play a big role in shaping the mood of the consumer, and things aren't looking great right now.
Wealth management advisors say the full effects of the tariffs are yet to be seen, but some worry the impact will be catastrophic.
Automotive Sector: Major car manufacturers also reported significant declines: Honda and Nissan saw drops of 2.4% and 3.6%, while Toyota and Subaru weren't unscathed, with drops of 5.2% and 6.5%. Investors are worried about the long-term implications of tariffs affecting exports and profit margins in this key industry.