pt.euronews.com
Global Market Crash Triggered by Trump's Tariffs
On Monday, a global market crash occurred due to new tariffs imposed by Donald Trump, causing the S&P 500 to fall below 5,000 points—a drop exceeding 20% from its peak—and leading to significant losses for tech giants like Tesla and Apple; experts predict a 60% chance of a global recession.
- What is the immediate impact of Donald Trump's new tariffs on global markets and investor confidence?
- A massive risk-aversion wave hit global markets on Monday, causing US stocks to plummet and European stocks to follow suit as new tariffs imposed by Donald Trump shook investor confidence. The S&P 500 futures index fell below the key 5,000-point threshold, marking a decline of over 20% from its February 2025 peak, potentially signaling a bear market.
- How do the recent market declines compare to previous historical crashes, and what are the potential consequences for businesses and consumers?
- This market downturn connects to broader patterns of trade wars and their impact on global economies. The drop in the S&P 500, exceeding 12.5% over three sessions, echoes historical market crashes like October 2008 and Black Monday 1987. Tech giants like Tesla and Apple experienced significant losses, collectively losing over $2 trillion in market capitalization.
- What are the long-term implications of this trade conflict for the US, the EU, and the global economy, considering the potential for recession and conflicting policy priorities of central banks?
- The future impact includes a potential global recession, with JP Morgan estimating a 60% probability. Goldman Sachs raised its US recession probability to 45%, citing tighter financial conditions and decreased business investment. The EU faces the dilemma of retaliating or containing the economic fallout, with experts advocating for de-escalation to avoid exacerbating economic hardship and inflation.
Cognitive Concepts
Framing Bias
The framing emphasizes the negative consequences of the tariffs, particularly the market crashes and potential recession. While this is a significant aspect, the article could benefit from a more balanced presentation by also exploring any potential positive outcomes or intended effects of the tariffs from the perspective of the administration imposing them. The headline (not provided but implied by the text) likely contributes to this framing.
Language Bias
While generally neutral in tone, the repeated use of phrases such as "massive wave of risk aversion," "plummeted," "historic losses," and "collapse" contributes to a sense of alarm and negativity. More neutral phrasing could mitigate this, for instance, replacing "collapse" with "decline" or using less emotionally charged descriptions of market movements.
Bias by Omission
The article focuses heavily on the immediate market reactions and expert opinions regarding the new tariffs, but it could benefit from including perspectives from other stakeholders, such as consumers or businesses directly affected by the tariffs. The long-term economic consequences are mentioned but not explored in detail. The potential impact on different sectors beyond technology is also under-represented. There is little discussion of potential mitigating factors or alternative policy responses.
False Dichotomy
The article presents a somewhat simplistic eitheor scenario in the discussion of the EU's response to the tariffs. It frames the choice as retaliating or containing, overlooking the possibility of a more nuanced or multi-faceted approach. It doesn't fully explore the spectrum of potential responses available to the EU.
Gender Bias
The article features several male experts and economists. While not overtly biased, it could benefit from including more female voices and perspectives to ensure more balanced representation across genders. The lack of gender diversity among the quoted experts might reinforce existing gender imbalances in the economic field.
Sustainable Development Goals
The article describes a significant global market downturn triggered by new tariffs, leading to substantial job losses and economic uncertainty. This negatively impacts decent work and economic growth, particularly in sectors sensitive to trade and global economic conditions. The decline in stock markets, decreased business investment, and potential recession directly threaten employment and overall economic prosperity. Quotes highlighting the potential for recession and job losses support this connection.