Instant Reaction: Trump Tariffs Trigger Stock Market Meltdown

<p>The &ldquo;America First&rdquo; trade is unraveling in the sweeping turmoil in global markets, with stocks acutely exposed to the US economy sinking alongside the dollar. As Wall Street&rsquo;s rebellion against Donald Trump&rsquo;s tariff war intensifies, traders are rushing into fixed-income havens.<br /><br />About $2 trillion was erased from the S&amp;P 500, with the gauge down about 5%. The Russell 2000 of smaller firms extended its plunge from a 2021 all-time high to 20% on speculation the president&rsquo;s trade offensive will stunt the American economy. The greenback slid 1.5%, reigniting the debate about its haven reputation during challenging times as the euro, yen and Swiss franc surged. Oil joined a selloff in commodities.<br /><br />All in, the much-vaunted America-first trade &mdash; buying up assets that win when the US outperforms the rest of the world &mdash; is reversing on concern that the steepest increase in American tariffs in a century will hammer economic growth.<br /><br />That&rsquo;s driving a fierce rally in global bonds, sending the yield on benchmark Treasuries briefly below the closely-watched 4% level. Most other yields also tumbled as money markets priced in a 50% chance of the Federal Reserve delivering four quarter-point rate reductions this year.<br /><br />Trump has embraced tariffs as a tool to assert US power, revive manufacturing at home and extract geopolitical concessions. Economists say the near-term result of his measures will likely be higher US prices and slower growth, or perhaps even a recession.<br /><br />Listen for comprehensive coverage of the U.S. market close on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Alix Steel, Carol Massar and Tim Stenovec.</p><p>See <a href="https://omnystudio.com/listener">omnystudio.com/listener</a> for privacy information.</p>