Recent tariff policies implemented by the United States have triggered significant reactions in global markets, leading to a dramatic sell-off worldwide. Major indices, like the Nasdaq-100, S&P 500, and Nikkei 225 futures, saw big declines, with Nikkei futures triggering circuit breakers. Futures markets quickly priced in almost five quarter-point interest rate cuts in the U.S. this year, leading to a sharp drop in Treasury yields and a weaker dollar.
Akashvani Correspondent reports that the key trigger behind today’s crash is the escalating trade conflict between the world’s two largest economies, the US and China. After the U.S. raised tariffs, China responded with duties on several American products, causing the Chinese stock market to fall 10 percent at the opening. President Trump’s comments that investors “have to take their medicine” and that no deal with China would happen until the U.S. trade deficit was fixed added to the uncertainty.
The panic spread across markets, with Asia seeing the biggest losses. Japan’s Nikkei dropped 7 percent, South Korea’s Kospi fell 5 percent, and Hong Kong’s Hang Seng lost over 10 percent. The negative sentiment also hit India, where the Sensex and Nifty were down more than 3.5 percent in the morning trade today.
Despite the turmoil, Trump defended his tariffs, saying world leaders were eager to make a deal. These events have raised concerns about possible instability in the markets, with some predicting a downturn on Wall Street