US stocks experienced fluctuations on Monday, leading to a mixed closing as investors navigated the complexities of President Donald Trump’s tariff proposal. The S&P 500 and the Dow Jones Industrial Average recorded declines of 0.23 percent and 0.91 percent, respectively, marking a third consecutive day of losses. In contrast, the tech-focused Nasdaq Composite registered a modest gain, increasing by 0.099 percent.
The market volatility was exacerbated by a surge of unverified reports suggesting that Trump might consider a 90-day pause on his tariff implementation. This speculation briefly sent the S&P 500 soaring by more than 7 percent before reversing course, as the White House quickly refuted the claims as “fake news.” In after-hours trading, US stock futures indicated a potential recovery, with contracts linked to the S&P 500 and Nasdaq rising by 0.98 percent and 1.02 percent, respectively.
Meanwhile, Asian markets displayed a positive response, with Japan’s Nikkei 225 jumping nearly 6 percent in early trading. Hong Kong’s Hang Seng index gained over 2.3 percent following a significant previous-day decline, while South Korea’s Kospi and Australia’s ASX200 both saw increases of approximately 1.5 percent. However, stocks in Indonesia, Taiwan, and Vietnam experienced sharp declines.
Despite the concerns echoed by top business leaders over the market’s instability, President Trump expressed his intent to escalate the trade tensions. In a post on his social media platform, Truth Social, he announced plans for an additional 50 percent tariff on China if the country does not withdraw its proposed 34 percent retaliatory tariff on US goods. Trump further stated that discussions with Chinese officials regarding their requests would be terminated.
China’s commerce ministry promptly responded to Trump’s tariff threats, labeling them as a “mistake on top of a mistake.” A spokesperson emphasized that China would not accept such measures and vowed to resist American pressure. As of Sunday, US customs authorities began enforcing a baseline tariff of 10 percent on imports, with additional duties ranging from 11 percent to 50 percent scheduled to be implemented against a variety of countries on Wednesday. China, being a crucial trading partner and strategic rival to the US, faces the highest proposed tariffs, while other key allies, including the European Union, Japan, and South Korea, brace for significant impacts on their export markets.
The ongoing trade situation underscores the complexities and interdependencies of global markets, highlighting the importance of diplomatic engagement and economic cooperation.
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