NEW YORK, New York - U.S. stocks fell sharply Thursday as investors and traders struggled with Presient Trump's controversial trade tariffs, as he paused imposts on Canada and Mexico for a month, causing confusion as well as concern. New Treasury Secretary Stephen Bessent, who many on Wall Street though would be a calming force, added to the volatility by a series of extraordinary statements, including calling Canadian Prime Minister Justin Trudeau a "numbskull."
"To the extent that another country's practices harm our own economy and people, the United States will respond," Bessent told the Economic Club of New York at a conference Thursday. "This is the America-first trade policy," he said.
Bessent also took aim at Iran, in an extraordinary attack saying the U.S. planned to send it broke.
"We are going to shut down Iran's oil sector and drone manufacturing capabilities," he said, saying the administration intended cutting off Tehran's access to the international financial system.
"Making Iran broke again will mark the beginning of our updated sanctions policy," the Treasury secretary said. "If I were an Iranian, I would get all my money out of the rial (Iran's currency) now," he said.
Following are Thursday's closing quotes for the major U.S. stock indices:
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S&P 500 (GSPC): The S&P 500 index fell by 104.11 points, or 1.78 percent, closing at 5,738.52. This decline reflects investor concerns over potential tariffs and their impact on economic growth.
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Dow Jones Industrial Average (DJI): The Dow Jones Industrial Average decreased by 427.51 points, or 0.99 percent, ending at 42,579.08. Major industrial companies experienced declines amid trade policy uncertainties.
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NASDAQ Composite (IXIC): The tech-heavy NASDAQ Composite dropped by 483.48 points, or 2.61 percent, to close at 18,069.26. This sharp decline was driven by significant sell-offs in technology stocks, particularly within the semiconductor sector.
Global Forex Markets Continue to Punish U.S. Dollar Over Trade Tariffs
The global foreign exchange markets on Thursday saw a continued sell-off in the U.S. dollar, trigged by trade tariffs imposed on Canada, Mexico, and China, some of which have been paused for a further month. The U.S. Dollar Index, measuring the dollar against a basket of currencies, declined by 0.24 points, or 0.23 percent, to 104.07.
Euro / US Dollar (EUR/USD)
The euro experienced a slight uptick against the U.S. dollar, with the EUR/USD pair trading at 1.0789, marking an increase of 0.01 percent. This movement aligns with the European Central Bank's (ECB) decision to cut interest rates by 25 basis points on Thursday, bringing the deposit facility rate to 2.50 percent. The ECB's move aims to address concerns over potential economic slowdowns due to global trade tensions. Despite the cut, the euro held on to the significant gains it has made this week in the wake of the trade tariff tensions.
US Dollar / Japanese Yen (USD/JPY)
The U.S. dollar weakened further against the Japanese yen, with the USD/JPY pair declining by 0.71 percent to 147.81. This depreciation reflects investor caution amid uncertainties surrounding U.S. trade policies and their potential impact on global economic growth.
US Dollar / Canadian Dollar (USD/CAD)
The USD/CAD pair saw a modest decrease of 0.20 percent, settling at 1.4305. The Canadian dollar's strength is partly attributed to stable crude oil prices, a significant export for Canada, and market anticipation of the Bank of Canada's upcoming policy decisions in defending its spat with the U.S..
British Pound / US Dollar (GBP/USD)
The British pound edged down against the U.S. dollar, with the GBP/USD pair trading at 1.2882, a decrease of 0.08 percent. The slight dip follows recent economic data indicating a slowdown in the UK's construction sector, raising concerns about the country's economic outlook. The pound's gains since the tariffs furore began remain in place.
US Dollar / Swiss Franc (USD/CHF)
The U.S. dollar declined by 0.82 percent against the Swiss franc, with the USD/CHF pair reaching 0.8832. This movement suggests a fyrther shift towards safe-haven assets like the Swiss franc amid global economic uncertainties.
Australian Dollar / US Dollar (AUD/USD)
The Australian dollar remained relatively stable against the U.S. dollar, with the AUD/USD pair trading at 0.6333, a slight decrease of 0.02 percent. Investors are closely monitoring Australia's economic indicators and commodity price fluctuations, which significantly influence the AUD's performance.
New Zealand Dollar / US Dollar (NZD/USD)
The New Zealand dollar appreciated against the US dollar, with the NZD/USD pair rising by 0.17 percent to 0.5735. This gain reflects positive market sentiment towards New Zealand's economic resilience amid global challenges.
Global Stock Markets Exhibit Mixed Performance Amid Economic Developments
Global stock markets presented a varied landscape on Thursday, influenced by regional economic policies, trade tensions, and sector-specific movements. Shares in Europe rose, while in the UK and Canada they fell. Following are Thursday's closing quotes for major indices aroud the world:
Canada
- S&P/TSX Composite Index (GSPTSE): Canada's main stock index declined by 286.78 points, or 1.15 percent, closing at 24,584.04. The implementation of U.S. trade tariffs on Canadian goods has raised concerns about a potential recession in Canada.
UK and European Markets
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FTSE 100 (United Kingdom): The FTSE 100 index declined by 73.00 points, or 0.83 percent, closing at 8,682.84.
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DAX (Germany): Germany's DAX index rose by 338.45 points, or 1.47 percent, to finish at 23,419.48.
CAC 40 (France): The French CAC 40 index experienced a modest increase of 23.92 points, or 0.29 percent, ending at 8,197.67.
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EURO STOXX 50: The EURO STOXX 50 index, representing major companies across the eurozone, advanced by 31.35 points, or 0.57 percent, closing at 5,520.47.
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Euronext 100 Index: The Euronext 100 Index gained 8.27 points, or 0.52 percent, ending at 1,597.90.
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BEL 20 (Belgium): Belgium's BEL 20 index edged up by 2.93 points, or 0.07 percent, to close at 4,463.37.
Asia-Pacific Markets
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Hang Seng Index (Hong Kong): Hong Kong's Hang Seng Index surged by 775.50 points, or 3.29 percent, to 24,369.71, driven by gains in Chinese technology stocks.
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S&P/ASX 200 (Australia): Australia's S&P/ASX 200 index fell by 46.40 points, or 0.57 percent, closing at 8,094.70.
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All Ordinaries (Australia): The All Ordinaries index declined by 36.70 points, or 0.44 percent, ending at 8,326.40.
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S&P BSE SENSEX (India): India's SENSEX rose by 609.87 points, or 0.83 percent, closing at 74,340.09.
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FTSE Bursa Malaysia KLCI: Malaysia's KLCI decreased by 5.51 points, or 0.35 percent, ending at 1,558.91.
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S&P/NZX 50 Index Gross (New Zealand): New Zealand's NZX 50 index edged up by 16.77 points, or 0.14 percent, to 12,428.84.
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KOSPI Composite Index (South Korea): South Korea's KOSPI increased by 18.03 points, or 0.70 percent, closing at 2,576.16.
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SSE Composite Index (China): The Shanghai Composite Index rose by 39.13 points, or 1.17 percent, to 3,381.10, reflecting optimism from China's economic stimulus measures.
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Nikkei 225 (Japan): Japan's Nikkei 225 index increased by 286.69 points, or 0.77 percent, to 37,704.93, buoyed by positive corporate earnings.
Middle East and Africa Markets
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TA-125 (Israel): Israel's TA-125 index declined by 15.94 points, or 0.63 percent, closing at 2,519.61.
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EGX 30 Price Return Index (Egypt): Egypt's EGX 30 rose by 71.00 points, or 0.23 percent, ending at 30,947.40.
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Top 40 USD Net TRI Index (South Africa): South Africa's Top 40 USD Net TRI Index advanced by 92.10 points, or 1.96 percent, to 4,792.36.
Overall, global markets displayed mixed reactions to geopolitical developments, with investors closely monitoring trade policies and economic indicators.
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