American stock market
Us Stock Makret: The impact of increasing tariffs on all countries around the world is now visible. Selling has started in markets around the world. The American market is also not untouched by this. The American markets closed for the second consecutive day on Friday. Let us tell you that S&P 500 declined by 6 percent. At the same time, Dow Jones Industrial Average dropped 2,231 points. S&P has fallen below 16% from its record in 500 February. Nasdaq -948.58 points or 5.73% fell to 15,602.03 points. Let us tell you that S&P 500 and Nasdaq have the biggest weekly decline since March 2020. The biggest weekly decline in How Jones since October 2020. That is, this is the biggest decline after the Kovid-19 epidemic.
China imposed counter tariff
China’s Finance Ministry said on Friday that it would impose an additional tariff of 34% on all American goods from April 10, as US President Donald Trump has imposed several times tariffs on Chinese goods. The tariff war has created a stir in the global financial markets after China has retaliated and has increased the possibility of economic recession. Investment bank JP Morgan has speculated that the global economy is likely to enter the recession by the end of the year.
Danger of increasing inflation worldwide
American Federal Reserve President Jerome Powell said on Friday that the imposition of heavy tariffs by Trump is threatened by inflation and recession in the US. This can slow the growth. Not only America, trade war has caused the threat of recession on the whole world economy. Tariff will increase the price of goods which will work to increase inflation. This will reduce demand which will open the way to recession.
What will be the effect on the Indian market?
Nothing good has been going on in the Indian market for the last several months. Millions of crores of investors have drowned. Now there is a period of decline in markets around the world. Its effect will also be seen on the Indian market. The Indian market may also continue to fall a major decline. In such a situation, small investors would be better to stay away from the market. Market expert says that no decision should be taken in a hurry. Let the market be careful. Only then take a decision.
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