Market Mayhem: China's Retaliatory Tariffs Shake Wall Street

Wall Street indexes dropped sharply following China's announcement of increased tariffs on U.S. goods in retaliation to U.S. tariffs. Investor confidence waned, driving sell-offs in stocks and industrial commodities. The financial turmoil raises fears of a recession, influencing expectations for Federal Reserve interest-rate cuts.

Wall Street faced a sharp decline Wednesday after China unveiled a significant increase in tariffs on U.S. goods, responding to President Donald Trump's tariffs enacted earlier that day.

China's finance ministry stated it would impose an additional 84% levy on U.S. imports starting April 10, escalating trade tensions and stoking fears of a looming recession.

The downturn rippled through global markets, impacting stocks, commodities, and government bonds, as recession concerns led to investor sell-offs and heightened expectations for Federal Reserve interest-rate cuts.

(With inputs from agencies.)