Equities Fell as Nasdaq 100 Fall from Peak Tops 20% – US Market Wrap

Stocks fell more, bonds rose, and oil fell to a four-year low as Federal Reserve Chair Jerome Powell signalled that the impact of a trade war would be greater than expected, with potential consequences including higher inflation and slower GDP.

Despite the economic dangers posed by Trump’s trade war, like as China’s willingness to react, Powell maintained a wait-and-see stance on rates. The S&P 500 experienced its biggest two-day drop since March 2020, shedding about $5 trillion in value, with the gauge falling 6% on Friday. The Nasdaq 100 has entered a bear market. Treasury 10-year rates fell two basis points, to 4.01%. Money markets have fully factored in four Fed rate cuts this year. The dollar gained 1%.

ByteDance acknowledged that it is in talks with the United States on keeping TikTok running there. Nvidia and Tesla were among the big tech companies that saw a decline. Chinese stocks listed in the United States, such as Alibaba and Baidu, fell as well. A barometer of big banks fell to its lowest level since August 7th, with Morgan Stanley and Goldman Sachs down more than 7%.

Trump stated that his economic policies will never change. Later, the president stated that he had a “very productive call” with Vietnam, which sent shares of firms with substantial manufacturing operations in the nation, such as Nike and Lululemon, skyrocketing.

The recent Wall Street rout is bringing back painful memories of market-wide trading halts that occurred during the COVID meltdown in March 2020. The S&P 500’s tumble on Friday was within striking distance of the 7% drop that would trip the NYSE breakers, halting all trading for 15 minutes.