As investors braced for economic fallout from Trump’s tariff policies, technology stocks bore the brunt of the downturn, with the Nasdaq Composite suffering its worst single-day loss since 2022, plunging 4%.
Global financial markets took a beating on Mar 10 as escalating trade tensions triggered a massive sell-off on Wall Street. US President Donald Trump’s latest remarks on the economy — calling it a “period of transition”— fueled investor anxiety, with fears mounting that his aggressive tariff policies on Canada, Mexico, and China could tip the US into a recession.
Tech stocks hit hardest in market rout
Technology stocks bore the brunt of the downturn, with the Nasdaq Composite suffering its worst single-day loss since 2022, plunging 4%. Tesla saw a staggering 15.4% drop, while AI chip leader Nvidia fell over 5%. Other tech giants, including Meta, Amazon, and Alphabet, also recorded significant declines, underscoring the sector’s volatility amid economic uncertainty.
Despite the steep market losses, a White House official sought to downplay the sell-off. Speaking to the Associated Press, the official said, “We are seeing a strong divergence between the stock market’s movements and the actual economic outlook.”
Why Trump’s comments spooked investors
In an interview with Fox News, Trump defended his trade policies, describing the economic turbulence as a necessary adjustment. “It’s a period of transition. We’re bringing wealth back to America,” he said.
However, economists warn that his escalating tariffs could fuel inflation and slow economic growth. Rachel Winter, an investment manager at Killik & Co, told the BBC, “The level of tariffs Trump is imposing will inevitably lead to inflation.”
Market reactions: Global stocks tumble
Following Trump’s comments, panic spread across financial markets:
Mohamed El-Erian, a prominent economist, noted that while investors initially welcomed Trump’s tax cuts and deregulation policies, they underestimated the risks of a full-scale trade war.
What’s next for the economy?
With new tariffs on Canadian steel and aluminum expected this week, analysts predict ongoing market turbulence. According to the BBC, uncertainty will likely persist as investors weigh the long-term consequences of Trump’s trade war on global economic stability.
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