Us Markets Fell Details: After the announcement of mutual tariff by US President Donald Trump, the US stock market recorded a huge decline for two days. The Dow Jones index fell at around 2,231.07 points, or 5.50% to close at 38,314. A day earlier, it fell by 3.98%. That is, in two days, Dow Jones has fallen by more than 9%.
At the same time, the S&P 500 index declined by 322.44 points i.e. 5.97%. It fell to 5,074. Nasdaq Composite declined by 962.82 points, or 5.82% and closed at 15,587. Shares of companies like Apple, Boeing, Intel and Dow Inc. declined by 12%.
Also read this: PM Modi welcomed in Sri Lanka, given guard of honor, many agreements may be stamped
Market cap decreased by about $ 5 trillion in two days (US Markets Fell Details)
Due to this decline, the market cap of the US stock market has decreased by more than $ 2 trillion. On April 3, the market cap of S&P 500 index was 45.388 trillion dollars, which has come down to about $ 42.678 trillion on April 4. At the same time, on April 2, the market cap was 47.681 trillion dollars. That is, in two days, the market cap has decreased by about 5 trillion dollars.
4 reasons for decline in US market (US markets fell details)
China also imposed 34% tariff on America: China has announced to impose 34% counter -tariff on America on Friday. The new tariff will be applicable from April 10. Two days ago, US President Trump imposed Tit for Tat Tariff worldwide, in which China was imposed an additional 34% tariff. Now China has also imposed the same tariff on America. Fear of decrease in corporate profits: The US has announced a 10%minimum tariff on all imported goods and more tariffs on some countries (eg 34%on China, 46%on Vietnam). This will increase the price of goods coming from there. This will increase the cost of companies, which will affect their profits. Investors have started selling shares for fear of profits, which has led to a decline in the market. Fear of global trade war: After the declaration of tariff by America, other countries can also impose counter tariffs. For example, if 26% tariff is imposed on India, India can also increase tariffs on American goods. This can cause disruption in global trade, which will affect the supply chain. Investors are nervous due to this uncertainty and they have started withdrawing money from the stock market. Concern of economic recession: If the goods become expensive due to tariffs, people will buy less, which can slow the economy. Also, crude oil prices have also declined due to low demand (US crude $ 69.63 per barrel). This is a sign of weak economic activity. Due to this, the trust of investors has been shaken and the decline in the market has intensified.