Wall Street stocks opened sharply lower on April 7, joining the global sell-off. This scenario came about because of fears that the trade war triggered by US President Donald Trump's tariffs will cause a slowdown in the global economy.
About 20 minutes into trading, the Dow Jones Industrial Average was down 3.6 percent to 36,947.62 points, AFP reported.
The broad-based S&P 500 slumped 3.5 percent to 4,897.96 points, and the tech-rich Nasdaq Composite Index fell 3.7 percent to 15,017.24 points.
Equity markets are in free fall after Trump unveiled sweeping tariffs on trading partners that were far more impactful than markets expected.
The losses pushed the Nasdaq into a bear market last week, and the other two indices were no further behind. A bear market is defined as a 20 percent decline from a recent high.
Economists point out that the risk of a recession is increasing in light of a possible resurgence of inflation and a slowdown in capital investment by businesses worried about the change in US policy.
"Whether or not the combination of tariffs will lead to a recession remains questionable, but they will slow growth," JPMorgan Chase Chief Executive Jamie Dimon said in a letter to investors, concluding that "the recent tariffs are likely to increase inflation."
This week's calendar includes updates on U.S. consumer prices as well as earnings from JPMorgan and other major U.S. banks. | BGNES
