US Stocks Plummet as Trade Tensions with China Escalate

The sell-off was fueled by concerns over a potential trade war between the US and China, which could lead to a global economic downturn, according to CNBC. China's retaliatory measures against the US tariffs imposed by the Trump administration have raised concerns among investors, leading to a wave of panic selling. The move by China to impose countermeasures against the US tariffs, perceived as "equal tariffs" by Trump, has reignited fears of a prolonged trade conflict between the two nations, potentially pushing the global economy into recession.

The volatility in the stock market is a reflection of the uncertainty and concern among investors about the impact of trade tensions on global economic growth. As the trade dispute between the US and China continues to escalate, investors are becoming increasingly risk-averse, leading to a sell-off in the stock market. Several high-profile companies took significant hits, with Tesla plummeting over 10%, while Boeing fell more than 9%. Nvidia and Apple each dropped over 7%, and Netflix and Oracle declined more than 6%. The Nasdaq Golden Dragon China Index, which tracks Chinese companies listed on the Nasdaq, tumbled 8.87%. Popular Chinese stocks also suffered heavy losses, including Futu Holdings, Bilibili, and iQIYI, which fell between 13% and 14%.

The recent turmoil in the US stock market has sent shockwaves globally, with all three major indices plummeting to their largest two-day drop since March 2020, as well as their biggest weekly percentage decline since the same period. The FTSE China A50 index futures fell by 2.89% in overnight trading, closing at 12,670 points. Meanwhile, spot gold prices plummeted 2.00% during the day, breaking below the $3,050 per ounce mark, as investors expressed concerns over the future economic outlook. The sharp decline in gold prices, which fell by as much as 3% at one point, is a significant indicator of the market's anxiety about the economic prospects. The COMEX gold futures also dropped 2.1% to $3,056.1 per ounce, with a weekly loss of 1.87%.

The massive sell-off in the US stock market, which saw $4.7 trillion in market value erased over two days, has also led to a staggering loss of $1.3 trillion in market capitalization for the seven largest US tech companies. These developments have raised alarm bells among investors, who are fretting about the potential consequences of such a drastic downturn in the market. As the global economy continues to grapple with the aftershocks of the pandemic, the recent market volatility has added to the uncertainty, leaving many to wonder what the future holds for the economic recovery.