Trump’s Tariffs Erase Stock Market Gains, Sparking Fears of Global Trade War

 

The stock market’s post-election Trump bump has officially been wiped out, as both stocks and bond yields tumble amid growing fears of a global trade war. The decline comes as President Donald Trump’s tariffs on key imports send shockwaves through financial markets, reversing previous gains fueled by investor optimism.

Earlier this year, markets had reacted differently, with bond yields jumping on expectations that tariffs would drive inflation. However, the current sell-off suggests that investors are now more concerned about economic slowdowns, supply chain disruptions, and rising costs for businesses.

Market Reaction and Investor Concerns

Stock indexes are sinking, erasing months of gains.

Bond yields are falling, signaling increased investor caution.

Concerns over a global trade war have intensified, with major economies considering retaliatory measures.

Analysts warn that if tensions continue to escalate, businesses could face higher costs, weaker earnings, and slower economic growth—all of which could weigh on the market in the long run.

As the situation unfolds, all eyes are on the White House’s next move and how global markets will react in the coming weeks.

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