Trump’s trade policies and weak economic data trigger sharp US market decline, while European stocks gain momentum.
US stock markets experienced their largest correction since September, with the S&P 500 falling 3.1% and the Nasdaq slumping 3.5%.
The market erased gains accumulated since the new administration took office, as heightened uncertainty surrounding Trump’s protectionist policies and conflicting economic data soured investor sentiment.
A volatile trade policy, including new tariffs on Canada, Mexico, and China, only deepened confusion.
Meanwhile, January saw a record 34% surge in the US trade deficit, and February’s job numbers fell short of expectations, signaling potential cracks in the economy.
Across the Atlantic, the euro surged by 4.3%, its biggest weekly rise in 16 years, as Germany’s coalition parties unveiled a massive 500-billion-euro infrastructure fund to stimulate economic growth.
Meanwhile, the ECB’s continued rate cuts kept European markets buoyant.
DHL Group’s share price surged 14% after surpassing profit expectations, while Tesla’s shares continued to fall, hit hard by weak sales in China and Germany, marking a 35% drop since the start of the year.
