Key points
- US stocks turned into a stampede on Monday: Bloomberg
- Traders are running for cover due to new developments in the US market
- Traders had initially welcomed Trump’s election win in late 2024
NEW YORK: From ditching US stocks for Chinese peers to buying the yen and the euro, traders are running for cover as they consider how a US markets meltdown may unfold, Western media reported.
According to Bloomberg, steady selling in US stocks turned into a stampede on Monday as recession jitters spread across Wall Street.
Risk aversion spilled into Asia, and growing conviction that US exceptionalism is over spurred a rush into the relative safety of the yen, Australian government bonds and the offshore yuan, the newspaper reported.
Global stock markets
According to AFP, Global stock markets extended losses on Tuesday as US President Donald Trump waffled on the size of tariffs he will levy on Canadian steel, aggravating concerns his trade policies could push the United States toward recession.
Traders had initially welcomed Trump’s election win in late 2024, optimistic that his promised tax cuts and deregulation would boost the world’s biggest economy and help equities push to further record highs.
But there is growing concern that tariffs against key trading partners will reignite inflation, forcing the Federal Reserve to again start raising interest rates and triggering a recession, according to AFP.
Since taking office in January, Trump has announced sweeping tariffs on imports from Canada, Mexico and China, though he had allowed a partial and temporary rollback for the two US neighbours.
