• Source:JND
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Stock Market Update: Following last week's tariff hike by US President Donald Trump, Asian stock markets saw a steep decline on Monday. A trade war with China was feared as a result of the action. Additionally, oil prices dropped, and U.S. stock futures indicated further declines were ahead. Japan's Nikkei 225 index fell by almost 8% shortly after opening. South Korea's Kospi dropped 4.4%, while Australia's S&P/ASX 200 dropped over 6%.

These losses came after Friday's significant decline on Wall Street. Investors fear that a global recession may result from the trade dispute between the United States and China. The hardest-hit businesses were those that operate in China.

Futures for U.S. stocks, which predict how markets will behave when they open, were also lower. Futures for the S&P 500 fell 4.2%. Futures on the Nasdaq dropped 5.3%, while futures on the Dow Jones Industrial Average fell 3.5%.

The price of oil kept declining. At $59.49 per barrel, U.S. crude oil was down $2.50. The global benchmark, Brent crude, dropped $2.25 to $63.33 per barrel. Prices haven't been this low since 2021.

What took place on Friday

Wall Street experienced its worst day since the COVID-19 pandemic on Friday. CNN reports that for the first time since March 2022, the Dow Jones closed lower. If it has dropped more than 10% from a recent peak, it is considered a correction.

The Dow fell 2,231 points, or 5.5%, while the S&P 500 fell 6%. Additionally, the Nasdaq Composite dropped 5.82%. The stocks of practically every company in the S&P 500 fell.

Since its peak in February, the S&P 500 has dropped 17.4%.

Following China's reaction to Trump's new tariffs, there was a significant decline. China announced that starting on April 10, all U.S. goods would be subject to a 34% tariff. This was equivalent to the 34% U.S. tariff on imports from China. The two largest economies in the world are engaged in a trade war that appears to be getting more serious.

The market continued to decline despite positive news about U.S. job growth on Friday.