Desk Report,
US stock market falls on Trump’s announcement
Yesterday, Monday, at noon local time in Washington, D.C., President Donald Trump suddenly published a series of letters on his social media account Truth Social. The language of the letters was harsh and straightforward. That is, the United States is going to impose new import tariffs on multiple countries starting August 1.
US stock market falls on Trump’s announcement
This announcement had an impact on the global market. In just one hour, there was a major decline in the main stock market in New York. The Dow fell 422 points. The Nasdaq and S&P 500 fell by 0.92 and 0.79 percent, respectively. Meanwhile, despite the decline in the US stock market yesterday, Asian stock markets showed signs of recovery on Tuesday morning.
Analysts say that the decline is not only due to tariffs, but also due to deep uncertainty. This situation has been intensified due to Trump’s ‘tariff letter’ and its international reaction.
Immediately after Trump’s announcement, the share prices of major companies such as Toyota, Nissan, Honda, LG and SK Telecom fell rapidly. The share prices of some companies have fallen by up to 7 percent. Even the value of equity funds managed by world-renowned investment institutions has fallen by 2 to 4 percent.
US investment strategist Ross Mayfield told CNN that the proposed tax rate is higher than market expectations, which has led to a massive sell-off in the stock market.
The price of US government bonds has fallen. The interest rate on 10-year Treasury bonds has increased to 4.39 percent and the interest rate on 30-year bonds has increased to 4.92 percent. Bond interest rates and prices are usually inversely related, meaning that when bond interest rates increase, their prices decrease.
On the other hand, the value of the US Dollar Index or Dollar Index has increased by 0.3 percent. The Japanese yen, South Korean won, South African rand
