U.S. Stock Markets Tumble Amid Political and Trade Turmoil
On Monday, U.S. equities suffered their steepest losses in months as President Donald Trump’s renewed attacks on Federal Reserve Chair Jerome Powell and escalating U.S.-China trade tensions rattled investor confidence.
- Dow Jones Industrial Average: ▼ 2.48%
- Nasdaq Composite: ▼ 2.55%
- S&P 500: ▼ 2.36%
Chinese Markets React to Trade War Escalation
Chinese equities declined as Beijing warned against exploitative trade deals, intensifying the ongoing tariff war with the U.S. The Nasdaq Golden Dragon China Index fell 1.2%, reflecting investor concerns over the deteriorating trade relationship.
Key Stock Movements
- Tesla (TSLA): Dropped 5.8% following reports of a delayed production launch for its new Model Y variant.
- Nvidia (NVDA): Fell 4.5% amid concerns over increased competition from Huawei’s upcoming AI chips.
- Netflix (NFLX): Rose 1.5% after strong earnings and positive analyst upgrades.
- Blackstone (BX): Declined 7.8% despite beating earnings estimates, as CEO warned of slowing asset sales.
Global Economic Headlines
Oil Prices Decline Below $60 Amid OPEC+ Output Increase
Brent crude oil prices fell below $60 per barrel for the first time since February 2021, dropping as much as 5.2% to $58.46, due to concerns over escalating global trade tensions and an unexpected output boost by major OPEC+ producers.
Gold Surges to Record High as Investors Seek Safe Haven
Gold prices soared to an all-time high of $3,403.90 per ounce, driven by investor flight to safety amid market volatility and a weakening U.S. dollar.
Eurozone Inflation Eases Slightly
Preliminary data from the EU showed a slight decline in inflation, offering some relief to policymakers. However, ECB officials remain cautious about rate cuts in the near term.
India’s Central Bank Signals Neutral Stance
The Reserve Bank of India indicated it will maintain a neutral policy stance, with inflation appearing under control and growth forecasts holding steady. Markets interpreted this as supportive of near-term stability.
Conclusion
Markets faced significant headwinds as geopolitical tensions and political uncertainties weighed heavily on investor sentiment. With corporate earnings season underway and macroeconomic indicators sending mixed signals, caution is likely to prevail in the near term.
Brought to you by PickMyTrade — delivering smart tools, automation, and insights for the modern trader.
