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President Trump’s tariff threats against Mexico and Canada have shaken global stock markets. US stocks saw sharp declines, and the Indian market may also be impacted.
Indian Stock Market.
Stock Market Today: US President Donald Trump’s reaffirmed tariff threats against Mexico and Canada have shaken global stock markets. Major equity markets faced significant losses, with US stocks experiencing a sharp decline.
The Indian market is also expected to feel the impact of the escalating trade war. The uncertainty surrounding the Trump administration’s actions is predicted to further dampen market sentiment, potentially leading to a decline in the Nifty.
Nifty saw a gap down opening of 172 points at 21,974.45 against the previous day close at 22,119.30. This is the first time since July 2024 that Nifty came below 22,000-mark. Sensex opened at 72,817, against the previous day close at 73,085. It is trading lower by over 150 points or 0.20 per cent.
Oil sank as OPEC+ will proceed with plans to revive halted production amid pressure from Trump to lower prices. The yield on 10-year Treasuries fell five basis points to 4.16%. A dollar gauge slid 0.4%. Bitcoin tumbled 9.5%.
VK Vijayakumar, a market expert at Geojit Financial Services, highlights the growing concern in global trade. The 25% tariffs on Canada and Mexico, along with the existing and increased tariffs on China (now totaling 20% with the additional 10%), demonstrate a shift from threats to concrete action. Vijayakumar suggests that a rebound in the Indian market is unlikely in the near future, despite reasonable valuations.
US Stock Market Shakes
US stocks plunged on Tuesday following President Trump’s announcement to reinstate tariffs on Mexico and Canada. The S&P 500 tumbled 1.8%, marking its worst day since December and pushing the index into negative territory for the year. The Dow Jones Industrial Average plummeted 650 points, after being down as much as 800 points from its peak earlier in the day. The tech-heavy Nasdaq Composite also suffered, falling nearly 2.7% as chipmaker Nvidia shed 8%.
The market’s downturn began shortly after President Trump’s announcement, which effectively dashed hopes of a last-minute trade deal. The news sent investors fleeing for safety, pushing the VIX, a measure of market volatility, to its highest level since December. All major stocks felt the heat, with Nvidia leading the decline among mega-caps. Meanwhile, Taiwan Semiconductor Manufacturing Co. announced a $100 billion investment in US chip plants, a move seen as supporting the President’s push for domestic manufacturing.
More updates shortly…
