Of euphoria for the electoral promises of Donald Trump to the stock market that has brought the reality of its policies. The markets have awakened and have realized the hostile scenario they face for Trump’s normative fluctuations: Rupture of international trade flows, more inflation and global recession. No market asset is safe. Even gold, shelter value par excellence, has retreated from the maximums marked before the president of the United States announced his tariff package against the entire world. The retaliation of China, which will tax the products from the United States with reciprocal tariffs of 34%, confirmed the dreaded climb of the tariff war.
Trump’s strategy to force a new economic paradigm He has erased dozens of billion from the world stock market map. Between Thursday and Friday, The S&P 500 lost 10.81%, the Nasdaq 11.79%and the Dow Jones of Industrials 9.48%. Mark Malek, investment director of Siebert Financial, said in statements to The Wall Street Journal that Customer calls began to arrive in mass on Friday morningas people worried about the devastation of Thursday’s market. Adam Phillips, managing director of EP Wealth Advisors, also riddled with questions, recommended that their clients do not let out of panic and do not rush to sell. All investment experts advised to focus on the long term, but the Fear weighed more in the balance and caused massive retreats.
Only Thursday and Friday of last week, after Trump’s tariff adsWall Street lost 6.4 billion stock capitalization, A historical record, with the six great technology with stock market capitations of billion dollars (Apple, Nvidia, Microsoft, Amazon, Alphabet and Meta Platforms) as the main victims. Apple fell 16.54% in the last two days of last week; Goal, 14.02%; Amazon, 13.13%; Nvidia, the Chips Design Company, retreated 12.87%; Alphabet, owner of Google, fell 7.22%; and Microsoft dropped 5.92%.
These falls were translated into a loss of value of about 534.3 billion in the case of Apple, of 258,760 million in the case of Amazon and 201,960 million for the finish line. For its part, Nvidia lost about 398,720 million capitalization, Alphabet about 113,500 million and Microsoft, 166,640 million dollars. Tesla, wrapped in a crisis derived from the role of its owner, Elon Musk, in the Trump government, sank 15.89%in two days and the large US financial entities also resented: JP Morgan Chase, -14.5%, Goldman Sachs, one -16.40%, Bank of America, one -17.82%. According to calculations of The Wall Street Journal, the US stock market has lost about 10 billion stock capitalization since the investiture of Donald Trump.
In Spain, The IBEX 35 lost around 60,000 million in just two days and reduced its annual profits to less than 7%. On Thursday the Spanish selective resisted with a setback of only 1.19%, but on Friday it was razed by panic, which especially sank bank assets. The Spanish bag closed its worst day since March 2020, when the pandemic exploded, lowering 5.83% (With corrections greater than 7%), up to 12,442 points, with all those quoted in negative. In fact, since the creation of Ibex 35, there have only been 16 sessions that have closed with a worse performance than last Friday, of the approximately more than 8,250 business days stock market that has been created since the selective was created in 1992.
The entire bank recorded falls around 10%, with stock losses that on Friday reached 22,730 million: Sabadell lost 10.97%; Unicaja, 10.56%; Caixabank, 10.30%; BBVA, 9.37%; Bankinter, 9.31%; and Santander, 8.77%. Acerinox, with a fall of 9.78%, and Arceormittal, with 8.56%, also added to the most affected values. Investor panic struck the banks especially for being one of the sectors most exposed to an economic crisis. The paralysis of the trade, the rebound of inflation and, ultimately, a recession, would reduce investments and cut credit, increase the risk of default and cause a new reduction in interest rates, which would negatively affect the performance of the bonds. They would also limit the benefits of the sector in mergers or acquisitions and exits.
Analysis houses confirm the Greater risk of global recession. For example, JP Morgan has raised this probability from 40% to 60%. Despite this, Donald Trump was unwavering and optimistic about his strategy. The president of the United States, who opened the door to moderate tariffs in case of “phenomenal offers”, as in the case of China could be the sale of Tiktok, on Friday armored and assured investors that “never” will change their commercial policies, since they have managed to be a “great time to become rich than ever before.” Along the same lines, Trump said that on Saturday that the initial suffering will be rewarded with an “economic revolution” that will trigger employment and business. «We are going to win. Endure, because it will not be easy, but the final result will be historical », The US president encouraged.
In the rest of Europe, the setbacks were also widespread and caused this to have been the worst stock market in more than three years. He Cac 40 Francés added a 7.57%drop on Thursday and Friday, the FTSE Mib de Milan a sinking of 10.03%, the German Dax a loss of 7.74%, the FT-100 London a 6.5%drop and the Euro Stoxx 50index in which the most capitalization European companies, a setback of the 8.44%.
As for the rest of the countries affected by Trump’s commercial threats, the Buenos Aires Stock Exchange closed with a 7.38%drop on Friday, the Brazilian with -2.69%, that of Hong Kong with -2.46%, Shanghai’s with -0.28%and Tokyo’s with -2.75%. Although Mexico and Canada have raffled the last wave of tariffs, the global rate of 25% for foreign cars and world uncertainty sank their bags 4.69% and 4.87% this last Friday, respectively.
For its part, The bags of the Persian Gulf Petroleum countries closed yesterday with large losses of almost 7% On its first day of operation after Donald Trump’s tariff announcement that, according to Morgan Stanley investment bank, will increase effective tariffs on US imports to 22%, levels that have been seen for a century, compared to 3% that the company predicted at the beginning of the year and 8-9% of its previous forecasts. This way, US would be at a level similar to that established by the 1930 Smoot-Hawley tariff protection law, often cited by economists as a factor that contributed to the great depression of 1929.
The Saudi, Kuwait and Catar Bags were the most affected on Sunday, since their indicators closed with a 6.78%, 5.69%and 4.23%drop, respectively, followed by Omar (2.07%) and Baréin (1.09%). The reference price of American oil closed Friday by $ 61.99 per barrel, after collapsing almost 14% in the two days after Trump’s tariff offensive. Meanwhile, Brent fell around 13% to be 65.58 euros per barrel. Markets anticipate a brake of trade and global growth derived tariffs, which derives in lower oil demand and a fall in its price.
Regarding the depreciation of the dollar, which is changed to 0.91 per euro, Trump seems convinced that the fortress of the US currency is braking national industry and employment. In his opinion, a weaker dollar will boost exports, recover manufacturing employment and help reduce the huge commercial deficit of the country.
The markets will open on Monday attentive to the countermeasures adopted by US business partners in response to their tariff package. More than 50 countries have already asked to negotiate with Trump exemptions and the European Union trade ministers will meet today to discuss their proposal for tariffs in case conversations with the US do not give a result. If the commercial conflict intensifies and extends over time, the stock market could take roots. From rent 4 they give a more reassuring message and suggest that the market is overreaching measures that will not reach such a critical point. Other experts, on the other hand, warn that Trump’s “day of liberation” is only the tip of the iceberg of a deep strategy to force changes in global trade that benefit the US, relocating companies, attracting foreign investment and achieving concessions from other countries.