Wall Street in Chaos: Tariff Assault Sparks Market Retreat

The Trump administration’s “liberation day” tariff assault on key US trading partners sent shockwaves through Wall Street on Friday, with trading screens awash in red as major indices tumbled.

The S&P 500 dropped 2%, the Dow was down 1.7%, and the Nasdaq hemorrhaged 2.7%, reflecting investor concerns about rising inflation and slowing growth – the classic ingredients of stagflation.

European markets were also hit, with the FTSE in the UK barely scratched while the ASX 200 in Australia was expected to drop more than 1% on Monday.

The fear of stagflation saw US Treasury yields slip and the dollar lose ground against other major currencies, while gold hit a new record high of $3,084 as investors sought safe-haven assets.

Despite the uncertainty, copper prices rose and iron ore outpaced other major commodities with a 3.5% gain for the week.

The market turmoil comes as consumers express heightened fears about rising inflation, putting pressure on the Fed’s ability to deliver further interest rate cuts.

With tariffs threatening higher prices, investors are bracing for continued volatility in the markets as they navigate the uncertain economic landscape.