Global Markets Plunge Amid Trade War Fears, Asian Indices See Massive Selloff
New Delhi, April 7 Global stock markets witnessed massive turmoil on Monday amid rising concerns of a full-blown trade war triggered by the United States’ newly announced tariff policy. Investors across major economies rushed to exit equities, leading to a bloodbath in global indices. The ripple effect of the U.S. policy is being seen from Wall Street to Asia, with mounting losses and deep red markets worldwide.
US and European Markets Sink Sharply
In the last trading session, U.S. markets closed with heavy losses, signaling investor anxiety. The S&P 500 crashed by 322.44 points or 5.97%, ending at 5,074.08, while the tech-heavy Nasdaq dropped 948.58 points or 5.73%, closing at 15,602.03. Futures markets were also in the red with the Dow Jones Futures trading 1,021.62 points or 2.67% lower at 37,293.24.
The selloff continued in Europe, where the FTSE 100 tumbled 5.21%, the CAC 40 dropped 4.45%, and Germany’s DAX plummeted by 5.21%, wiping billions off investor portfolios. Analysts reported that U.S. investors alone suffered losses exceeding $5 trillion in just two trading sessions.
Asia Faces a Market Bloodbath
Asian markets echoed the negative sentiment with sharp selloffs in major indices. Out of the 9 active Asian stock markets, 7 indices were seen trading in the red. Markets in Thailand and Indonesia remained closed due to public holidays, providing temporary relief.
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Hang Seng Index fell a staggering 2,437.82 points (10.67%) to 20,411.99
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Taiwan Weighted Index plunged 2,069.64 points (9.72%) to 19,228.58
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Straits Times Index dropped 7.91% to 3,523.13
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Shanghai Composite Index declined 6.77% to 3,130.17
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Nikkei 225 slumped 6.21% to 31,684.23
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KOSPI (South Korea) dipped 4.77% to 2,347.73
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Gift Nifty was down 3.65% or 837 points, trading at 22,122
The widespread panic highlights a global reaction to escalating trade tensions, especially with fears of retaliatory tariffs affecting exports, supply chains, and corporate earnings.
Outlook: Volatility Expected to Continue
Market experts believe the current volatility may persist throughout the week, depending on the developments in the U.S. trade stance and responses from major economies. Global investors are advised to exercise caution as geopolitical and economic uncertainty drives aggressive risk-off sentiment.