Market Shock: Trump's Tariffs Trigger Global Financial Turmoil

The U.S. stock market battles pressures from anticipated tariffs and pivotal inflation data. President Trump's 25% tariff on auto imports jolts global markets, with significant selloffs in auto stocks. Investors brace for potential rate cuts amid economic uncertainties, as gold prices surge and the S&P 500 enters correction territory.

The U.S. stock market faced significant pressures on Friday as President Donald Trump's plan to implement a 25% tariff on auto imports loomed, with a crucial inflation report also drawing investor attention.

Markets worldwide reacted negatively to Trump's tariff decision, causing a notable selloff in auto stocks. General Motors and Ford experienced losses in trading, while investors await further U.S. tariff announcements scheduled for April 2. Attention focuses on the U.S. Personal Consumption Expenditure data, a key inflation measure which could influence the Federal Reserve's next moves.

Amid these developments, concerns about a global trade war have intensified, prompting forecasts for lower company earnings and boosting gold prices as a safe-haven asset. The S&P 500 and Nasdaq have both suffered substantial setbacks, highlighting economic uncertainties and investor caution as the first quarter of 2025 concludes.

(With inputs from agencies.)