Stock markets fall
US stock markets ended sharply lower on Monday after President Donald Trump announced a 15% tariff on global imports. The new tariff will take effect immediately. The Dow Jones Industrial Average fell 689 points, or 1.39%, to close at 48,936.45. The S&P 500 declined 0.67% to 6,863.01. The Nasdaq Composite slipped 0.60% to 22,749.39. Investors reacted quickly to the news. Many fear that higher tariffs will increase costs for American companies. Firms that depend on global supply chains may face higher import bills. This can reduce profits and slow business activity. The Dow saw the biggest drop because many of its companies operate in global markets. These companies are more exposed to trade risks than technology-heavy firms listed on the Nasdaq.
Gold rises
After the announcement, investors moved money into safer assets. Gold futures rose 2.7% to $5,217.90. Silver also gained more than 5%. Oil prices increased slightly: West Texas Intermediate crude traded above $67 per barrel, and Brent crude crossed $71. Analysts say markets are worried about inflation rather than a sudden drop in demand. Cryptocurrencies did not offer protection. Bitcoin fell 2.52% to $65,861. Ether also declined. Despite being called “digital gold,” Bitcoin often falls when overall market risk increases.
Federal Reserve
Investors are also watching the Federal Reserve. Governor Christopher Waller said recent jobs data may not give a clear picture of the economy. He added that policymakers will study more data before making decisions on interest rates. If tariffs push prices higher, inflation could rise. In that case, the Federal Reserve may delay interest rate cuts. Higher rates usually put pressure on stock markets. Market experts say the next few weeks are important.
