US President Donald Trump’s new trade tariffs sparked global recession fears, with TV personality Jim Cramer foreseeing a sharp market decline. Trump imposed a 10% tariff on all imports on April 5, causing significant drops in US indices like the S&P 500, which fell by 6%, its worst weekly performance since the onset of COVID-19 in March 2020.
The Dow and NASDAQ suffered significant losses, with the Dow dropping 5.5% and the NASDAQ plummeting by 5.8%. In two days, the Dow lost 1,679 points on Thursday and 2,231 points on Friday, marking its worst two-day decline since March 2020. The tariffs had a widespread negative impact, extending beyond US markets to affect Europe and Asia as well.
On his show Mad Money, Cramer cautioned that markets might suffer a crisis like 1987. He advised Trump to engage with nations not using retaliatory tariffs and offer incentives for compliance to avert a potential repeat. Cramer emphasized the importance of rewarding countries and companies following trade rules to prevent a scenario similar to 1987 from materializing.
Cramer mentioned that amidst market turmoil, robust job data could avert a recession. He indicated that a crash might not inevitably trigger a downturn. JPMorgan Chase & Co. anticipated a US recession this year, attributing it to Trump’s new tariff effects.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
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