Trump's Tariff Talk Sends Shockwaves Through Global Markets

Global stock indexes plunged significantly after President Donald Trump announced a possible 'massive increase' in tariffs on Chinese goods. The Nasdaq dropped over 2%, while Treasury yields and the U.S. dollar weakened. Market analysts express concern over increased volatility and uncertainty amid geopolitical tensions and political shifts in Japan.

In a dramatic turn of events, global markets reacted sharply to President Donald Trump's declaration of considering a 'massive increase' in tariffs on Chinese goods. This announcement, combined with his decision to forego a meeting with China's President Xi Jinping, rattled investors worldwide.

Stock indexes tumbled, with the Nasdaq losing more than 2%. Meanwhile, the Dow Jones Industrial Average saw a decline of 531.75 points, reflecting a 1.15% drop, and the S&P 500 fell by 1.62%. On the international stage, MSCI's global stock gauge also took a hit, and the euro gained ground against a weakened U.S. dollar.

Further complicating the market landscape, Japan's currency faced a challenging week following political changes and rate uncertainties. Officials voiced concerns over currency volatility, as financial markets brace for potential shifts in international trade policies and economic leadership, including France's governmental restructuring.

(With inputs from agencies.)