Swiss Market Index Suffers Significant Drop

The Swiss Market Index (SMI) experienced a dramatic fall, dropping over 5% this Wednesday. The decline was primarily driven by the escalating trade tensions initiated by the United States, with pharmaceutical stocks at the forefront of the selloff.

Impact of US Tariff Announcements

US President Donald Trump's announcement of imposing a "major tariff" on pharmaceuticals has sent shockwaves through the market. This move has particularly affected Swiss pharmaceutical giants, with Novartis AG and Roche Holding AG seeing their shares plummet by 6.97% and 6.08%, respectively.

Market Reaction

The immediate market reaction was stark, with the SMI plunging 5.55% by 1:43 pm CET. The pharmaceutical sector's vulnerability to trade policies was highlighted, as investors quickly offloaded shares in response to the tariff threats.