Yesterday we reported how the Dow Jones Industrial Average had dropped dramatically in response to Trump’s tariffs. Today markets continued their downward trend as the Dow Jones dropped by 5.5 percent. Worse than yesterday.
As yesterday, Amazon stock continued to drop in value. Today it only dropped by 4.15 percent, as opposed to the steep drop of 8.98 percent yesterday. Goldman Sachs is down a further 7.91 percent, whilst JP Morgan stock is down 8.05 percent. There is very little silver lining today. Nike was the only stock to rebound, but it had dropped 14 percent yesterday.
Fear for IPO Listings
To make matters worse. Not only have markets underperformed (the Nasdaq and S&P 500 both dropped today), but several companies looking at listing on exchanges, have decided to delay their IPOs.
The Financial Times reported how Klarna has paused its IPO plans. Elsewhere Chime Financial is also reported to be delaying its public filing. What has been the response?
Jerome Powell shared today: “What we’ve learned is that the tariffs are higher than anticipated, higher than almost all forecasters predicted.” Although for now he is willing to wait and see how markets react before considering any adjustments to his policy stance.
Meanwhile Trump posted on the Truth Social platform how “My policies will never change.” Alluding to how tariffs are unlikely to change n the future. Countries like Vietnam have already responded by declaring their willingness to eliminate tariffs on U.S. goods. If something is agreed over the weekend there may be reason for hope that stocks will improve on Monday.
Are we Heading for a Recession?
JP Morgan analysts have suggested that a recession is 60% likely following on from Trump’s tariff announcements. Central banks across the world have cut growth forecasts.
Markets confirmed this prediction as economists slashed eurozone growth forecasts today from 0.7 percent to 0.6 percent. India and others face potential growth forecast cuts
Importantly for U.S. voters, imports to the U.S. are reported to form only 14 percent of GDP. It may be a big correction, but when the markets start to rise again, it may last longer than one might have hoped.
#DowJones #MarketCrash #IPO
Author: Andy Samu
Data comes from leading trading platform TradingView.
See Also:
How Did the Dow Jones React to the Market Crash? | Disruption Banking
