Market Panic as Trade War Looms

The stock market has plunged into panic due to the reciprocal tariff bombshell from U.S. President Donald Trump, and the value of safe assets like gold and oil is also plummeting indiscriminately. As China, the world's second-largest economy, retaliates with tariffs, fears of a trade war-induced recession are sweeping the market.

Stock Futures Take a Hit

U.S. stock futures plummeted late on April 6 as the Trump administration showed no signs of backing down on tariffs. The S&P 500 futures were down 4.22%, and the Nasdaq 100 futures dropped 4.95%, signaling continued market distress.

Global Markets React

Major stock markets in Germany, France, and the UK also declined sharply. Tech giants like Nvidia, Apple, and Tesla saw significant drops, with TSMC's stock price falling by 6.75%.

Safe Assets Not So Safe

Even gold and oil, traditionally seen as safe havens, couldn't escape the liquidity crunch. Gold futures fell by 2.9%, and WTI crude oil prices hit their lowest since April 2021.

Economic Forecasts Turn Gloomy

With the tariff backlash evident, forecasts for the U.S. economy have turned negative. JP Morgan predicts a -0.3% growth rate, with nearly 2 million more unemployed. The Fed's cautious stance has further unsettled investors.