Market Recovers After Initial Deep Losses
U.S. stocks saw a dramatic turnaround on Monday morning, rebounding from steep losses after President Donald Trump suggested openness to negotiating tariffs with trade partners. The Dow Jones Industrial Average surged 470 points (1.2%), while the Nasdaq and S&P 500 gained 2.5% and 1.8%, respectively.
“Countries from all over the world are talking to us,” Trump posted on Truth Social. “Tough but fair parameters are being set.”
This recovery follows last week’s market turbulence, where the Dow suffered its worst week since 2020, and the Nasdaq officially entered a bear market.
Global Markets Experience Sharp Declines
Before the U.S. markets rebounded, global markets suffered severe losses. Asian stocks took a significant hit, with Hong Kong’s Hang Seng Index plummeting 13.22%, its worst single-day drop since the 1997 Asian Financial Crisis. Other major losses included:
- Japan’s Nikkei 225: Down nearly 9%, triggering a trading halt.
- Taiwan’s Taiex: Dropped 9.7%.
- South Korea’s KOSPI: Fell 5.5%.
- China’s Shanghai Composite: Declined more than 7% despite government intervention.
European markets mirrored the decline, with the British FTSE 100, Germany’s DAX, and France’s CAC all experiencing significant drops between 6-10%.
Trump Addresses Market Concerns
Speaking aboard Air Force One on Sunday, Trump acknowledged the market turbulence but remained optimistic about the country’s economic future.
“I don’t want anything to go down, but sometimes you have to take medicine to fix something,” he said. “Our country has gotten a lot stronger, and eventually, it will be the most dominant economically in the world.”
U.S. Markets Braced for Continued Volatility
Despite Monday’s gains, uncertainty looms as investors react to Trump’s new tariffs. The Dow closed Friday down 2,230 points (5.5%), while the S&P 500 and Nasdaq fell 6% and 5.8%, respectively. The Nasdaq’s decline placed it firmly in bear market territory, marking a 20% drop from its recent peak.
The coming days will test whether Monday’s recovery is the start of a sustained rebound or a brief respite in an ongoing period of volatility.
Keep up with the effect of Trump’s tariffs with us on Que Onda Magazine.