Global markets faced a turbulent start as U.S. stocks plummeted prior to the implementation of new tariffs by President Donald Trump. The tariffs, including a 25% levy on Canada and Mexico and an additional 10% on China, triggered concerns of retaliatory actions from Beijing, particularly targeting U.S. agricultural exports. Market reactions were evident as Tokyo’s Nikkei 225 and Hong Kong’s Hang Seng indices recorded significant losses, while South Korea’s Kospi marginally increased. The S&P 500 and Dow Jones Industrial Average experienced drops, signaling investor skepticism following Trump’s tariff decisions and growing apprehensions about the U.S. economy’s resilience. The recent downtrend in the market was exacerbated by weaker-than-expected economic reports, especially in the manufacturing sector, contributing to a decline in new orders and heightened inflation fears due to tariff implications.

The market’s downturn also impacted tech giants like Nvidia and Tesla, with Nvidia witnessing an 8.8% drop. Wall Street saw a broad decline, with Kroger’s stock falling 3% after its Chairman and CEO resigned following an internal probe. The cryptocurrency sector also felt the repercussions, with MicroStrategy and Coinbase witnessing declines. European markets, however, surged following reports of easing inflation, with Germany’s DAX and France’s CAC 40 performing notably well. Despite the challenging market conditions, U.S. benchmark crude oil prices fluctuated, and the dollar saw a slight decline against major currencies. Overall, the market turbulence reflected investor concerns over trade tensions, economic indicators, and global uncertainties, underscoring the need for a cautious approach in navigating volatile financial landscapes.