Stock markets around the world dropped sharply due to new tariff policies announced by US President Donald Trump. Key indices like the Nasdaq-100, S&P 500, and Japan’s Nikkei 225 futures saw steep falls. In fact, trading in Nikkei futures was temporarily halted due to sudden losses. The futures markets are also predicting up to five interest rate cuts in the US this year, which has led to lower Treasury yields and a weaker US dollar.
What caused the global market crash?
The main reason is the escalating trade war between the United States and China. After the US raised tariffs on Chinese goods, China hit back by imposing duties on several American products. As a result, the Chinese stock market fell by 10% during early trading.
President Trump added to the uncertainty by saying there will be no deal with China until the US trade deficit is resolved. He also told investors to “treat themselves,” causing confusion in the financial world.
Asian markets suffered the most. Japan’s Nikkei dropped by 7%, South Korea’s Kospi by 5%, and Hong Kong’s Hang Seng by more than 10%. The negative mood also spread to India, where the Sensex and Nifty both fell by over 3.5% in morning trade.
Even with the global panic, Trump defended his tariff policy and claimed that world leaders still want to strike deals with the US. However, the ongoing tension has raised fears of a possible recession, especially in the US markets.
