Deepening the sale of the market after China’s revenge against the Trump tariff

Securities markets around the world are interested in education on Friday after Friday, after China coincided with US President Donald Trump raising the definitions in an escalating trade war. It was not even a better report than expected on the US labor market, which is usually economic discrimination every month, sufficient to stop the slide.

The S& P 500 index decreased by 4.8 percent in the afternoon, as its day decreased since Covid-19 broke the global economy in 2020. The Dow Jones industrial average decreased 1719 points, or 4.3 percent, as of 1:08 pm East time, and the Nasdaq compound was 4.9 percent lower.

The main stock index in Canada, S&P/TSX, has already 1,221 points, more than five percent, as of 1:20 pm East time.

To date, there are a few, if you find the winners, in the financial markets of the trade war. European stocks have seen some of the largest losses a day, as indexes were drowned by more than four percent. The price of crude oil has declined to its lowest level since 2021.

Other basic building blocks of growth, such as copper, have witnessed that prices slide sharply on fears that the trade war will weaken the entire global economy.

China’s response to American definitions caused an immediate acceleration of losses in the markets worldwide. The Beijing Ministry of Commerce said it would respond to the 34 percent definitions imposed by the United States on imports from China by imposing a 34 percent tariff on imports of all American products that start on April 10.

The United States and China are the largest economists in the world.

“The market reaction provides a ruling and we must take this seriously,” Brendan Lacarda, Moody’s Analytics, told CBC News.

He said that the investors did not expect the Trump tariff to be as high as it was, or that China’s revenge was strong. While investors interact with this and occupy numbers on their profit expectations, “expectations will undoubtedly turn into darker.”

“Where does the market find below?” He said. “This is a little open question.”

The best American job report is expected

The markets briefly regained some of their losses after the American jobs report on Friday morning, which said that employers have accelerated their employment last month than economists expected. It is the latest indication that the US labor market remained relatively strong during the beginning of 2025, and it was a speech that remains the economy outside the recession.

But job data was backward, and the fear of hitting the financial markets revolves around what will happen.

“The world has changed, and economic conditions have changed,” said Rick Reader, the chief global investment official for the US Fixed Investment at the American Investment Bank, said Black Rock.

The main question is: Will the trade war cause a global recession? If so, the stock prices are likely to need to decrease more than they were already. The S&P 500 decreased about 16 percent of its record in February.

Trump appears to be uncomfortable. On Friday morning, he woke up at Mar-A-Lago, and his own club in Palm Beach, Florida, and headed to the golf course a few miles after writing on social media that “this is a great time for the normal.”

It depends a lot on the duration of Trump’s tariff and the type of revenge provided by other countries. Some Wall Street still adhering to Hope Trump will reduce the definitions after negotiating with other countries to raise some “victories”. Otherwise, many say the recession seems possible.

Trump said the Americans may feel “some pain” due to the definitions, but he also said that the goals are long, including getting more manufacturing functions to the United States, worthy of it. On Thursday, the situation is almost a medical process, where the American economy is the patient.

“For investors looking in their portfolios, they could have felt that a process was performed without anesthesia,” said Brian Jacobsen, the chief economist at Annex Wealth Management.

But Jacobsen also said that the next surprise for investors could be the extent of the speedy negotiation of the customs tariff. “The recovery speed will depend on how the officials negotiate,” he said.

Vietnam said that Deputy Prime Minister will visit the United States for trade talks, for example, while the European Commission President pledged to respond. Others said they were hoping to negotiate with the Trump relief administration.

The stocks that declined in the aftermath of China are moving

Trump criticized China’s revenge on Friday, saying on his social platform in fact that “China played a mistake, I felt panic – the only thing they could not do!”

In Wall Street, shares of companies that do a lot of business in China have decreased to some of the most dangerous losses.

GE Healthcare received 12.3 percent of its revenues last year from China, and decreased 12.7 percent.

Dubont decreased by 11.2 percent after China said its organizers are launching a monopoly in the Dubont group, China, a multinational chemical company. It is one of the many measures targeting American companies in retaliation for American definitions.

In the bond market, the treasury revenue continued to decline sharply, as concerns about the power of the American economy. The return on the cabinet decreased for 10 years to 3.95 percent from 4.06 percent late on Thursday and about 4.80 percent in early this year. This is a big step for the bond market.

The Federal Reserve can reduce the main interest rate to relax on pressure on the economy, as was the case late last year before stopping in 2025. But it may have less freedom than you want.

Federal Reserve Chairman Jerome Powell said in the written notes that were delivered in Arlington, Virginia, that definitions could increase inflation expectations. This may be more harmful than the same high inflation, because it can push the behavior that begins a vicious cycle that only increases inflation. American families have already said that they are preparing for sharp increases for their bills.

“Our commitment is to maintain the long -term inflation expectations well and make sure that one time increase in the price level does not become a problem with continuous inflation,” Powell said.

US Secretary of State Marco Rubio denied on Friday that global economies were affected, and insisted that the markets “will adapt” in time.

“Their economies are not disrupted. Markets interact with a major change in the global system in terms of trade,” said Mark Mark Retti.

In stock markets abroad, DAX in Germany lost 3.9 percent, CAC 40 fell from France by 3.6 percent, and Japanese Nikki 225 decreased by 2.8 percent.