US Equities Decline as Trade War Intensifies and Powell Rules Out Rate Cuts
Recent market developments have raised concerns following President Trump's announcement of new global tariffs. Key points include:
- 10% tariffs on all imports, with higher rates for 60 countries.
- Highest tariffs set at 49% for Cambodia, 46% for Vietnam, 34% for China, and 27% for India.
- Tariff calculations focus on trade deficits without considering product-specific tariff rates or non-tariff barriers.
- US stocks plunged significantly; the Dow Jones lost 1,679.39 points, and the S&P 500 fell nearly 5%.
- Fed Chair Jerome Powell indicated no imminent interest rate cuts, despite market volatility.
- Major IPOs and M&A deals are on hold, including StubHub and Klarna Bank.
- China announced a reciprocal 34% tariff on US goods effective April 10.
The situation remains fluid, with potential further impact on markets expected as negotiations unfold.