Wall Street's been hit hard as the trade war between the U.S. and its major trading partners heats up, wiping out all the gains on the S&P 500 since Donald Trump was elected. And now, that slump is spreading to the Australian sharemarket, with the S&P/ASX 200 dipping by 0.2% or 18.4 points at the start of trading.
The drop comes after the Trump administration imposed tariffs on imports from Canada, Mexico, and China, with all three countries retaliating. That’s sparked concerns about a slowdown in the global economy.
The S&P 500 dropped 1.2%, with more than 80% of its stocks closing lower. The Dow slid 1.6%, and the Nasdaq lost 0.4%. In fact, the Nasdaq briefly hit a 10% drop from its recent high, which usually signals a market correction, but gains in tech stocks like Nvidia and Microsoft helped ease the damage a bit.
Financial stocks were some of the biggest losers on the S&P 500. JPMorgan Chase fell by 4%, and Bank of America dropped by 6.3
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