US stocks have plummeted to levels last seen during the Great Depression, with the Dow Jones Industrial Average shedding nearly 1,000 points and the S&P 500 seeing its worst performance since 1928.
The market’s decline follows Donald Trump’s announcement of a “reciprocal tariff” policy, which has led to a 9% drop in the S&P 500 since its introduction. The yield on a 10-year Treasury note has also risen to 4.89%, while the dollar index fell more than 1 percent to its lowest level since March 2022.
Analysts warn that Trump’s tariffs are having a destabilizing effect on the economy, making it “unstable and unknowable” due to policy uncertainty. Scott Ladner, chief investment officer at Horizon Investments, says this is a classic sign of a “no confidence” trade.
The International Monetary Fund (IMF) has also joined the warning, stating that Trump’s tariffs will slow global growth and increase the odds of a recession in the US from 25% to 40%. The market seems to be recovering slightly, but concerns about the economy’s stability remain.
Source: https://newrepublic.com/post/194253/donald-trump-tariffs-economy-great-depression