The Dow Jones index drops at mid -morning 832 points or 2.17% to 37,482 points. Nike is the most penalized value, with a 4.9%drop, while Home Depot is left 3.88%. Amazon bounces 1.8% and JPMorgan Chase records 0.71%.
The S&P 500 falls 1.76% to 4,984 points, at the edge of entering the bearish market taking into account that on Friday it already closed with a 17.4% drop from its maximums. Nasdaq drops 1.39% to 15,371 points.
Wall Street is living a very complicated days. Last week, for the first time in its history he recorded two consecutive days with falls of more than 1,500 points, including a 2,231 points on Friday. The S&P 500 fell 6% on Friday, its worst performance since the beginning of the Covid-19 Pandemia in March 2020. The reference index lost 10% in two days.
He Nasdaq Composite entered a bearish market on Fridaywith a 22% drop from their record, after losses of almost 6% on Thursday and Friday.
And the weekend has not served to improve the spirits. Foreign countries that will have to pay «a lot of money» to lift generalized tariffs, Trump warned during the weekend. «I don’t want anything to sink, but sometimes you have to take medicine to fix something,» he said. «We have a commercial deficit of one billion dollars with China, with hundreds of billions of dollars a year we lose. And unless we solve that problem, I will not reach an agreement.» Nevertheless, The losses have moderated before the rumors in the parquet on some type of tariff suspension of up to 90 days, as well as on a closed door of the Fed. However, the White House has assured the CNBC what Any mention of a 90 -day suspension are «fake news».
Investors were initially surprised last week by the magnitude of certain rates applied to commercial partners, which seemed to be based on a formula without a valid justification based on established economic theory. His confusion increased even more when China decided on Friday to retaliate first with a 34% tariff over all US imports, instead of negotiating. The European Union seems to move in line with China, preparing its own reprisals.
Several senior administration officials have also left in defense of Trump’s plans. The Secretary of the Treasury, Scott Besent, has rejected the statement that tariffs could take a recession to the US economy. In addition, both Besent and the main economic advisor, Kevin Hassett, have claimed that more than 50 countries have contacted themselves to start negotiations, which raises questions about the logistics challenges posed by tariffs that will come into force this week. The Secretary of Commerce, Howard Lutnick, has warned that tariffs «will definitely remain in force for days and weeks.»
Today the Chinese Ministry of Foreign Affairs has described the «reciprocal tariffs» of the US as intimidation. They are «the typical unilateralism and protectionism and economic harassment,» said spokesman Lin Jian in an appearance.
Panic in markets comes right in the prelude to Start in Wall Street of the season of presentations of the quarterly results of the first quarter. This same Friday it is expected that several of the great American banks, such as JPMorgan Chase, Morgan Stanley and Wells Fargo, announce their figures.
Waiting for these accounts, The JP Morgan CEO, Jamie Dimonhas indicated in its annual letter to the shareholders that the tariffs will boost inflation and will be struck to an economy that had already slowed down. «Regardless of what is thought of the legitimate reasons of the newly announced tariffs – and, of course, there are some – or the long -term effect, good or bad, there is likely that there are important short -term effects,» Dimon warns. «We are likely to see inflationary results, not only in imported goods but in internal prices, as the costs of inputs increase and increase the demand for national products.»
“That the tariff menu cause or not a recession remains an unknown, but will slow down the growth”, Highlights the CEO of JP Morgan.
Among today’s protagonists, Citi analysts have raised the recommendation of Dollar General of ‘Sell’ to ‘Neutral’. The analyst Paul Deco also improves the target price, from 69 to 101 dollars. «In the short term, Dollar General does not have the same tariff risk as most other companies in our retail sectorand could benefit from consumers to opt for lower value products, «he says in his report.» With a 12 -month perspective, we no longer believe that a sale recommendation is justified, since consumer companies are likely to have better results than those that sell more discretionary products. «
In the airline sector, Raymond James foresees better perspectives for Jetblue Airways actions. The analyst Savanthi Syth raises her recommendation of ‘onfraprar’ a ‘just like the market’ and sets the target price at $ 5, with an upward potential of 27% since the closing of Friday. Jetblue shares have collapsed 50% this year, with a sharp 25% drop in a single day in January after disappointing financial perspectives.
The one that has more difficult to raise heads is Tesla, which falls more than 3.9% in the New York morning “in our opinion, The tariff economic arms unleashed by the Trump administration is a double setback for Tesla”, Says Wedbush Dan Iives, who reduces the council to the electric vehicle manufacturer. The expert cites the brand crisis due to the link between CEO Elon Musk and President Trump, on the one hand, and the pressure on the distribution chain by the commercial war.
For the rest, the punishment of the great technological giants continues, with Apple lowering another 3.8%, although Nvidia struggles to get positive.
Fear has extended to all risk assets, also hitting cryptocurrencies very hard. Bitcoin endangers $ 77,000, while Ethereum at times is paid below $ 1,500.
In raw material markets, oil prices go back, expanding the losses of last week, as the escalation of commercial tensions between the US and China enlivens fears to a recession that would reduce the demand for crude oil. The futures of the American West Texas fall 2.29% to $ 60.57 per barrel, in a minimum of four years and having arrived at times below 60 dollars. International reference Brent barrel falls 204% to $ 64.18.
Gold prices have touched a minimum of more than three weeks, since investors get rid of bullion to cover their losses in other operations due to fear of a world recession due to an escalation of the global commercial war. The yellow metal drops 0.42% to mark $ 3,026.54.
The euro rises 0.10% against the dollar until leaving the exchange rate at $ 1,0965 for each single currency.
Meanwhile, investors continue Looking for refuge in the bondspushing profitability down. The ten -year bonus yield is 4,052%, while in the two -year bonus the profitability low to 3,641%after having reached 3.52%, the lowest since September 2022.
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