Global Market Decline Due to New Tariffs
The announcement of sweeping tariffs by U.S. President Trump has triggered a significant decline in global markets, leading to recession fears and a bear market confirmation for the Nasdaq index.
Impact on Indian Stock Market
- Indian shares opened sharply lower on April 6, 2025, influenced by global trade war concerns.
- The Nifty 50 index declined by 5% to 21,758.4 in pre-open trading.
- The BSE Sensex fell by 5.29% to 71,379.89.
- All 13 major sectors saw declines, with broader small-caps and mid-caps losing 10% and 7.3%, respectively.
Asian Markets Reaction
- Other Asian markets experienced similar slumps, with the MSCI Asia ex-Japan index decreasing by 6.8%.
- Japan’s Nikkei 225 index dropped by 6.5%.
U.S. Economic Outlook
- Federal Reserve Chair Jerome Powell stated that the tariffs are "larger than expected" and could impact inflation and economic growth.
- There is an uncertain outlook on the U.S. economy due to these new trade policies.
Commodities and Nasdaq Index
- The Nasdaq index entered a bear market, confirmed on April 4, 2025.
- Oil prices and other commodities have plunged due to the global market decline.
