Stocks escape again when the trade war is intensifying

The routing on the stock markets continued on Friday as concerns have been deepened from a world trade war, after China retaliated against President Trump’s radical rates with high samples from American products.

The S&P 500 was to open more than 2.6% less on Friday, according to future trading. Thursday, the index has displayed its worst daily loss since 2020, plunging 4.8%.

European and Asian indices also fell sharply for a second day, investors weighed the economic effects of Mr. Trump’s prices. The Stoxx Europe 600 fell by more than 4%, erasing its earnings for the year. In Japan, the Nikkei 225 fell 2.8%, corresponding to a drop the day before.

The Chinese government said on Friday that it would correspond to Mr. Trump’s plan for 34% tariffs on goods from China with its own 34% tariff on imports from the United States. He also added 11 American companies to his list of “unreliable entities”, essentially preventing them from doing business in China or with Chinese companies.

The movements have shown that Beijing does not intend to retreat in the trade war with Mr. Trump. Investors were already in advance due to the potential disruption that Mr. Trump’s policies, including general deportations and federal workers’ layoffs may have on the economy.

His announcement on Wednesday, which he described as a “liberation day”, included a minimum rate of 10% on almost all imports, which made the markets convulse while investors poured shares and asked for security in state bonds.