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American stock futures decreased early on Thursday, as they withdrew the S&P 500 index to the lowest levels in more than six months, as global markets’ reaction to the comprehensive tariff plans revealed last night by President Donald Trump.
The United States will apply a basic tariff to all imported goods, starting from April 9, with additional additions on the basis of each country separately that will take the average collective tariff to about 22 %, according to Fitch Ratings, the highest in the world, and the last level in the early twentieth century.
Definitions on the goods from Canada and Mexico, which were excluded from the effort of last night, will resume from today, along with a 25 % duty on all the imports of the car sector announced last week. The administration also develops separate fees on semiconductor sectors and pharmaceutical preparations, which can be revealed in the coming days.
“With today’s procedure, we will finally be able to make America great again, greater than ever,” the president said. “The jobs and factories will return to our country, and you see that this really happens. We will run our local industrial base.”
The expansion of the customs tariff of the president, which included two uninhabited islands near the Antarctica, shook the markets around the world and hit the fears of renewed recession in the largest economy in the world.
Deutsche Bank estimated that the definitions, if prolonged, will take 1.5 % of GDP in the United States with the addition of a similar amount to the main inflation pressure.
The US dollar index, which tracks Greenback against a basket of six global currencies, has been placed 1.65 % at 102.102, which is the lowest level in six months, as investors were concerned that the revenge tariff from Europe and China would put forward global economic growth.
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“The chances of stagnation in the largest economy in the world now have increased to the extent that the market believes it is possible,” said Richard Carter, head of fixed attention research at Cellc PLC. “How Trump is going on, and the fact that these definitions will add to the fire of inflation, is the guess of anyone.”
The assets of safe infiltration were in this step, as gold prices rose to the highest new level ever amounted to $ 3,167.57 an ounce and treasury revenues decreased for 10 years to 10 basis points to 4.051 %, which is the lowest in five months, in circulation overnight.
“This is a great shock to the global economy and is close to the worst scenario that Trump threatened in the course of his campaign,” said George Vice, a FX & Macro, in London.
He added: “This will lead to reprisal measures by commercial partners, and although there may be room for negotiation, high definitions and continuous certainty that raises the risk of stagnation.”
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In Wall Street, the potential impact of wide tariff plans on corporate profits, especially in the technology sector, was largely weighed on American stock futures, as S&P 500 is expected to decrease by 188 points, or 3.3 %, in the opening minutes of trading.
Nasdaq that focuses on technology is priced to decrease 715 points, with Apple ((Aapl)) Noticeable 7.4 % less and Nvidia ((Nvda)) Set for a decrease of 4.2 %.
Meanwhile, more than 1,122 points is called the industrial average of the start of the Trading Day, with a resignation of 30 Stock to its lowest levels on March 13.
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Foreign markets were severely exposed, as Stoxx 600 in Europe decreased by 1.6 % in the middle of Frankfurt Tadawul and FTSE 100 Britain by 1.2 % in London.
In Asia, Nikkei 225 in Asia, Asia, fell by 2.77 %, prompting the index to the lowest levels since early August, with the previous MSCI index in Japan decreased by 0.67 %.
