U.S. stock markets saw a sharp selloff on Friday, driven by renewed fears over the escalating U.S.-China trade war, as China imposed sweeping tariffs on all American goods in direct response to President Trump's newly announced 34% tariffs on Chinese imports.
Key market movements:
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Nasdaq Composite (IXIC):Dropped more than 20% from its December all-time closing high, officially entering bear market territory.The tech sector, which is particularly sensitive to trade tensions due to its global supply chains and reliance on Chinese manufacturing and rare earth materials, was hit hardest.
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S&P 500 (SPX):Fell sharply in early trading, signaling broader market weakness.Major sectors like tech, industrials, and materials saw deep losses.
This market downturn reflects investors' growing concerns that:
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The trade war is no longer limited to targeted tariffs but has expanded to full-blown economic retaliation.
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Global supply chains may face severe disruption, especially in semiconductors, EVs, and clean tech.
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Corporate earnings and global growth projections could be revised downward.
Market sentiment is further rattled by:
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China's suspension of key U.S. agricultural imports.
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The imposition of rare earth export controls.
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Mounting regulatory scrutiny against American firms in China.
