Stocks fall in US and Asia over Trump tariffs concerns
3312 Mins Read
Global stock markets steadied in Europe on Tuesday after a sharp decline in US shares, driven by investor concerns over the economic fallout from President Donald Trump’s tariffs.
The downturn followed Trump’s remarks in a televised interview, where he described the US economy as being in a “period of transition” when asked about the possibility of a recession.
Since the interview aired on Sunday, top officials in the Trump administration have attempted to reassure investors.
On Monday, the S&P 500 fell nearly 3%, while European markets opened slightly higher.
In a Fox News interview recorded on Thursday but broadcast over the weekend, Trump appeared to acknowledge economic concerns, stating, “I hate to predict things like that. There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing.”
Charu Chanana, an investment strategist at Saxo Bank, told the BBC, “The previous notion of Trump being a stock market president is being re-evaluated.”
Monday’s trading in New York saw the S&P 500 drop 2.7%, while the Dow Jones Industrial Average fell 2%.
Asian markets initially tumbled on Tuesday before staging a partial recovery. Japan’s Nikkei 225 closed down 0.6%, while South Korea’s Kospi ended 1.3% lower.
The US dollar continued its decline against the pound and euro, extending losses from earlier in the month.
The Nasdaq, which is heavily weighted towards technology stocks, was hit hardest, dropping 4%.
Tesla shares plunged 15.4%, while AI chipmaker Nvidia fell over 5%. Other major tech firms, including Meta, Amazon, and Alphabet, also saw significant declines.
