Stock expands recent sale, oil drops as China returns after Trump rates

Through Caroline Valetkevitch New York (Reuters) -global stock markets and oil prices tumbled again on Friday when China fell against US President Donald Trump’s rates and concerns over a long -standing global trade war. The Nasdaq composition was on its way to a bear market, while the Pan-European Stoxx 600 index confirmed that it was in a correction as the trade war transferred the global recession-commer. Since Trump unveiled his rates late Wednesday, S&P 500 businesses have lost more than $ 4 trillion to the stock market value, a record-two-day decline for the benchmark, which exceeded a two-day loss of $ 3.3 trillion in March 2020, when the pandemic over the global markets, according to LSEG data. Some investors fled to the security of government bonds, while the dollar of Thursday’s weakness recovered. In response to Trump’s rates, China said on Friday that it would impose 34% extra levies on US goods, confirming the fear of investors that a full -fledged global trade war was underway. Trump has slapped a 10% rate of 10% on most US imports and much higher levies on dozens of countries, which set up the steepest trade barriers in more than 100 years. “It’s kind of the worst fears of where the tariff program was heading,” said Rick Meckler, partner at Cherry Lane Investments, an office for family investment in New Vernon, New Jersey. “For the investors who were sure it was just a negotiation – although it is true at some point – it gets deeper in the detail and more dangerous for companies.” Data showing that the US economy added much more jobs than expected in March did little to ease the mood. Federal Reserve chairman Jerome Powell said in remarks at a business journalists conference in Arlington, Virginia, that Trump’s new rates were ‘bigger than expected’ and the economic fall, including higher inflation and slower growth, is likely to be too. He also said the US Central Bank does not have a forecast of a downturn in its prospects, but he admitted to moving the predictors of the private sector to the front. “I think (Powell’s) comments will be disappointing for those who believe the Fed will enter soon,” said Peter Cardillo, chief economist of the market at Spartan Capital Securities in New York. Companies with exposure to China have also fallen. Apple, Nvidia and Amazon.com were all sharp. Bank shares have dropped all over the world as the fear of a recession increased. The S&P 500 Financial Index fell by 6.8%, while the energy fell by more than 8% as oil prices dropped. The Dow Jones industrial average dropped 1,953.69 points, or 4.78%, to 38,601,34, the S&P 500 lost 288.97 points, or 5.35%, to 5,107.55 and the NASDAQ compound dropped 871.79 points, or 5.25%, to 15,678,81. MSCI’s measure of shares around the world has dropped 41.22 points, or 5.1%, to 766.42. The Pan-European Stoxx index closed 5.1% lower, its largest daily loss since the Covid-19-fueled sale in 2020. The index dropped almost 12% from the March 3 which closes all time, confirming it was in the corrective area. Japan’s Nikkei 225 fell 2.8% overnight for a second session. Brent -Ru futures dropped by 6.5% to settle at $ 65.58. US crude futures lost 7.4% to settle at $ 61.99, the lowest since April 2021. The dollar index was 0.9% higher after the biggest decline since November 2022 Thursday. The euro fell 0.81% at $ 1.096. By the Japanese yen, the dollar strengthened 0.58% to 146.9. After years of big flow in US stocks and a booming US economy, investors are struggling with the place to put their cash. This contributed to driving a powerful rush to the government bond markets. The yield on the 10-year Treasury note dropped by 12.2 basis points to 3.933% after dropping from 3.86% to a six-month low. Returns move inversely to prices. The German 10-year effect yield, the measure of the eurozone block, dropped as much as 17 BPS during the day. By the end of this year, the futures contracts of the money market have a prices in the accumulated rate cut of 110 basis points of the Fed, compared to about 75 bps a week before. Traders have also increased their bets on reducing bank or England and the European Central Bank. “Many investors I talked to have just said in this kind of environment, let’s go cash and just wait,” Meckler said. (Reporting by Caroline Valetkevitch in New York; Additional Reporting by Harry Robertson in London, Stephen Culp in New York, and Rae Wee in Singapore; Editing by Sharon Singleton, Hugh Lawson, Peter Graff, Alison Williams, Chizu Nomiyama and Rod Nickel)