Investor Fear Amid Escalating Trade War
Nasdaq Centered on Tech Stocks -5%, Dow -3.9%,
Traders at the New York Stock Exchange on the 3rd watch with serious expressions. On this day, the New York stock market suffered the worst day in five years since the early pandemic spread in 2020 due to the Trump administration’s announcement of reciprocal tariffs the day before. New York = AFP Yonhap News,
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, ‘On the 3rd, the U.S. New York stock market was devastated by the shock of reciprocal tariffs announced by President Donald Trump’s administration the day before. The tech-heavy Nasdaq composite index fell 5.97% compared to the previous session, marking the worst day since the COVID-19 pandemic.’,
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, ‘On this day on the New York Stock Exchange, the Dow Jones Industrial Average fell by 1,679.39 points (-3.98%) to finish at 40,545.93. The Standard & Poor’s (S&P) 500 index plunged by 274.45 points (-4.84%) to 5,396.52, and the Nasdaq composite index fell by 1,050.44 points (-5.97%) to finish at 16,550.61. The Dow and S&P 500 indices recorded their largest one-day declines since June 2020 and March 2020, respectively.’,
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, ‘On this day alone, around $3.1 trillion (about 4,500 trillion won) worth of market capitalization disappeared from the New York stock market, according to the Wall Street Journal (WSJ), citing Dow Jones market data. The fear that Trump’s administration’s high tariffs would lead to retaliatory tariffs, intensifying the global trade war and impacting the U.S. economy, seemed to have engulfed investors.’,
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, ‘Particularly, major companies with a high dependency on external supply chains were hit the hardest. Nike plummeted by 14.44%, while discount chain Five Below fell by 27.81%. Clothing brands like Gap also recorded a decline of 20.29%.’,
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A shopper walks past a Nike store in a large shopping mall in King of Prussia, Pennsylvania, on the 3rd. On this day, Nike’s stock price on the New York stock market plunged 14.44% compared to the previous session due to the reciprocal tariff shock announced by the Trump administration the day before. King of Prussia = Reuters Yonhap News,
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, “Even the so-called ‘Magnificent 7,’ representing the major tech stocks on the New York Stock Exchange, dropped sharply. Apple’s stock, the world’s largest company by market capitalization, plummeted by 9.25% in a day, marking its largest decline since 2020. Since Apple manufactures most of its iPhones, which account for half of its sales, in China, it is expected to face significant impacts among U.S. big techs. Reuters reported that experts expect iPhone prices may increase by 30-40% if Apple passes the increased costs from raised tariffs onto consumers.”,
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, ‘Although smaller than Apple’s, stock prices of Meta and Amazon also declined by 8.96% and 8.98%, respectively. Nvidia, which outsources chip manufacturing to Taiwan’s TSMC, slid by 7.81%. Tesla, which has its largest electric vehicle production facility in Shanghai, China, fell by 5.47%.’,
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, ‘President Trump commented on the turmoil in the New York stock market, saying it was “expected.” According to the White House pool reporters, he reacted this way while on a flight to Florida.’,
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