Global Markets Plunge as US-China Trade War Escalates

Stock markets plummeted globally as China retaliated against US tariffs, intensifying the trade war. Despite positive US job data, fears of a global recession loomed large, affecting equities and commodities. Analysts suggest the duration and intensity of tariffs could determine the market outlook.

Stock markets across the globe took a nosedive on Friday following China's decision to counter President Donald Trump's significant tariff increase, escalating an ongoing trade war. Despite an unexpectedly strong US jobs report, a widespread market decline persisted.

Early trading figures showed the S&P 500 dropping 2.8%, as investors reacted to the worst daily drop in equities since the COVID-19 pandemic began in 2020. The Dow Jones Industrial Average fell by 1,049 points, or 2.6%, while the Nasdaq composite saw a 3.2% decline.

The intensification of the trade war sent European stock indices plummeting by over 3.5%, and triggered a sharp dip in oil and copper prices. China's Commerce Ministry announced an equivalent 34% tariff on US imports, signaling an intensification of trade tensions between the two largest global economies.

(With inputs from agencies.)