United States stock markets suffered losses of $ 5.4 trillion in two days after the imposition of fees by President Donald Trump.
The measure was accompanied by retaliation from China, intensifying fears of a global recession.
This Friday (4), the S&P 500 index fell 6%, after a 4.8% drop the day before, marking the largest weekly drop since the start of the pandemic.
Technology actions, including giants such as Apple and Amazon, also retreated, causing the Nasdaq composite index to enter the territory of “Bear Market”, with a drop of over 20% since its peak in December.
In Europe, the Stoxx 600 index fell 8.4% a week, while the UK FTSE 100 registered a 7% drop. Asia’s MSCI index also dropped 4.5%.
The situation worsened when China announced 34% tariffs on all US imports, increasing concerns with a possible recession.
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Ajay Rajadhyaksha of Barclays warned that if tariffs are not quickly reversed, the US and the European Union are likely to face a recession this year.
Federal Reserve President Jay Powell also expressed concerns, stating that tariffs would result in “higher inflation and slower growth.”
Market reactions were intensified by a robust employment report for March, which showed that the US added more jobs than expected.
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However, investors were more concerned about the retaliation of China, leading to a higher risk asset escape and an increase in demand for US Treasury Titles.
The VIX index, which measures expected volatility, fired, reaching its highest level since 2020.
In addition, commodity markets were also impacted, with Brent oil falling 6.5% and WTI falling 7.4%, reaching prices that were not seen three years ago. The price of copper, a health indicator of the global industry, fell about 9%.
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The widespread sale of shares led the income from the 10 -year treasure securities to fall to 3.86%, the lowest level from before Trump’s election.