Stock Market Reaction to China's Tariffs and Trade War Fears
The stock market faced significant losses as China retaliated with new tariffs on U.S. goods, leading to fears of a trade war-induced recession. The Dow Jones, S&P 500, and Nasdaq Composite all experienced declines. China imposed a 34% levy on U.S. products, matching the tariff set by President Trump. Tech stocks like Apple, Nvidia, and Tesla were heavily affected due to their exposure to China. Market participants reacted by selling off stocks, turning to bonds for safety. Bank stocks also tumbled amidst concerns of a U.S. economic slowdown.