On Monday, shares in the US experienced a rebound, with investors holding onto the hope that President Donald Trump would shift his focus from tariffs to trade deals. Despite Trump’s increased threats of tariffs towards China, US Treasury Secretary Scott Bessent announced negotiations with Japan and other nations. Trump also mentioned that some tariffs may become permanent while others may be subject to negotiation. The White House stated that over 50 countries have reached out to discuss trade. However, concerns about the impact of the tariffs on the US and global economies still persist, resulting in significant fluctuations in the stock market. The S&P 500, which tracks the 500 biggest companies in the US, ended the day down approximately 0.2%, after experiencing the sharpest swings since the Covid-19 pandemic. The European Union trade official Maroš Šefčovič expressed his belief that negotiations will eventually take place. The announcement of tariffs on goods from every country led to the worst one-day falls in US and UK stock markets since the Covid pandemic. High-profile business leaders in the US have started speaking out against the market downturn. Additionally, China’s decision to impose retaliatory tariffs of 34% on the US has further escalated worries about a potential trade war between the two countries. If world leaders cannot agree terms with Trump, analysts have warned of a potential destructive effect on global economies. Investors are concerned about the significant impact on corporate profits and economic growth. In early trading on Monday, the S&P 500 briefly dropped more than 20%, nearing what is known as a “bear market”. However, rumors that the White House was considering putting tariffs on hold led to a surge in shares. European markets closed lower, with significant declines in London, Paris, Berlin, and Asia. The price of oil dropped more than 4% before recovering some ground, while copper, an indicator of economic growth, fell roughly 3%. The price of gold, usually seen as a “safe” investment, also decreased.

Source: https://www.bbc.com/news/articles/czrvngj03jlo