US stocks dip once more as tariff conflict heats up
(MENAFN) US stocks experienced another sharp decline on Monday before staging a partial recovery, as markets remained rattled by President Donald Trump’s new tariffs and escalating tensions with China. The Dow Jones plummeted by as much as 1,200 points, or 3%, marking the second consecutive day of losses exceeding 1,500 points—an unprecedented event. The S&P 500 dropped up to 4.7%, briefly entering bear market territory with a 19% drop from its peak. The Nasdaq fell by 3%, sinking deeper into bear market levels with a 23% decline from its high.
Stocks attempted a rebound later in the day, with the Dow closing 349 points lower, the S&P slightly negative, and the Nasdaq stabilizing. The market turmoil followed Trump’s implementation of a 10% tariff on all imports, which took effect on Saturday, and Beijing’s retaliatory measures. Trump, undeterred, threatened to impose additional 50% tariffs on China if they did not reverse their actions by April 8th.
Business leaders, including billionaire investor Bill Ackman, expressed growing concern over the White House's aggressive trade policies. Ackman warned that the US could be heading toward an “economic nuclear winter.”
The market chaos spread globally, with Germany’s DAX falling over 4%, Hong Kong’s Hang Seng Index plummeting 13%, and US crude oil dipping below $60 per barrel. Bitcoin also dropped under $77,000. As margin calls increased and global recession fears grew, JPMorgan raised its prediction of a US and global recession to 60%, up from 40%.
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