The global stock market experienced significant volatility on Monday amid uncertainty over tariffs imposed by the United States. Wall Street had a turbulent day of trading, with the S&P 500 swinging between steep losses and gains before ending the day down 0.2 percent. President Trump issued a new ultimatum to China to rescind its retaliatory tariffs on the United States, while governments around the world raced to schedule phone calls, send delegations to Washington, and submit proposals to lower their import taxes to escape the tariffs.
Earlier, shares in Asian and European markets saw significant declines. Hong Kong’s stock market plunged 13 percent, and Taiwanese stocks dropped 10 percent. European markets closed sharply lower, with the Pan-European Stoxx Europe 600 down 4.5 percent and the FTSE 100 in London falling 4.4 percent.
Commodities and cryptocurrency markets were also affected. Benchmark Brent crude oil prices dropped more than 2 percent on Monday, while copper prices fell.
Tariff impact shakes global markets
Bitcoin dropped below $78,000 on Sunday night, indicating that even assets pitched as stable long-term investments are subject to market volatility during such turbulent times. The timing was awkward for Walmart, as its investor event in Dallas coincided with the implementation of new global tariffs. Doug McMillon, Walmart’s chief executive, acknowledged the uncertainty generated by these tariffs, stating, “There are so many variables playing out in terms of what costs are going to be and where people source from.
We’re going to have to manage this daily.”
Treasury Secretary Scott Bessent indicated that President Trump might be ready to negotiate, while White House trade adviser Peter Navarro claimed there would be no negotiations, underscoring the mixed messages emanating from the administration. Concerns over Trump’s tariffs disrupting global supply chains and accelerating inflation continue to weigh heavily on investor sentiment. The recent market rout further exacerbates these worries, with the S&P 500 close to bear market territory, down nearly 18 percent from its mid-February peak.
The current volatile environment reflects widespread unease about the potential for a severe economic downturn if trade tensions continue to escalate. Wall Street analysts and global investors are watching closely, trying to navigate through the uncertainties and potential implications for the future.
