Snapping a two-week gaining streak, domestic markets plunged 2.6 percent this week amid fears of a trade war, which led to a global sell-off following US President Donald Trump’s reciprocal tariff announcements and renewed concerns over the economic slowdown.
The Sensex tumbled 2,050 points during the week to close at 75,365 yesterday. The Nifty declined 615 points during the week to end at 22,904.
In the broader market, the BSE Mid-cap Index dropped 2.5 percent, and the Small-cap Index shed 1.6 percent. At the foreign exchange market, the rupee appreciated 23 paise during the week to end at 85.23 against the dollar yesterday.
The S&P 500 lost six per cent after China matched U.S. President Donald Trump’s big raise in tariffs announced earlier this week. The move increased the stakes in a trade war that could end with a recession that hurts everyone. Not even a better-than-expected report on the U.S. job market, which is usually the economic highlight of each month, was enough to stop the slide.
The drop closed the worst week for the S&P 500 since March 2020, when the pandemic crashed the economy. The Dow Jones industrial average plunged 2,231 points, or 5.5 per cent Friday, and the Nasdaq composite tumbled 5.8 per cent to pull more than 20 per cent below its record set in December.