Global Markets Roiled, Aussie Dollar Sinks, RBA Rate Cuts Loom
By HINDI GAURAV NEWS DESK
NEW YORK | SYDNEY | BEIJING – Tears flowed on Wall Street overnight as the United States stock market plunged a staggering 6 per cent, marking the worst sell-off since the height of the COVID-19 pandemic. Over the past two days alone, the top 500 companies in the US have lost a massive 11 per cent of their market value, sending shockwaves across global financial markets.
The turmoil has been fueled by the escalating US-China trade war, which intensified after China retaliated against President Donald Trump’s aggressive new tariffs. Beijing announced sweeping 34 per cent tariffs on all US imports, along with export restrictions on rare earth elements, triggering panic among investors worldwide.
China’s Ministry of Finance accused the United States of "typical unilateral bullying" and vowed to lodge a complaint with the World Trade Organization (WTO). President Xi Jinping’s administration also introduced export controls on seven rare earth elements critical to high-tech industries and medical devices.
In response, Mr Trump mocked China’s retaliation on social media, claiming, “China played it wrong, they panicked,” while insisting this was a “great time to get rich.”
However, the market reaction told a different story. Nervous investors dumped shares en masse, wiping out trillions of dollars in value.
S&P 500: Down 6.0% to 5,074.08
Nasdaq Composite: Down 5.8% to 15,587.79 (now in bear market territory)
Dow Jones Industrial Average: Down 5.5% to 38,314.86
All 11 sectors of the S&P 500 posted losses. Iconic stocks such as Apple (-7.3%), Chevron (-8.2%), and Boeing (-9.5%) were among the biggest casualties.
Adding to the panic, Federal Reserve Chair Jerome Powell warned that the tariffs pose a “significantly larger than expected” threat to the economy. He predicted rising inflation, higher unemployment, and slower growth, but said it was “too soon” to adjust monetary policy.
Back home, the Australian Securities Exchange (ASX) is set to open sharply lower on Monday, with futures pointing to a 4.29 per cent plunge. The Australian dollar has collapsed to a five-year low, nearly falling below US 60 cents overnight.
Economists are now expecting up to four interest rate cuts from the Reserve Bank of Australia (RBA), starting in May, to shield the economy from the ripple effects of the global downturn.
According to AMP Chief Economist Shane Oliver, the trade war is “worse than markets expected” and will most likely slow down Australia’s growth. “The bigger threat to global growth means a deeper correction in share markets,” he said.
With the world’s two largest economies locked in a bitter trade standoff, the path ahead remains uncertain. But one thing is clear: the era of trade wars has returned — and the global economy may be its first major casualty.
📉 Market Snapshot (as of close Friday US time)
S&P 500: ▼6.0%
Nasdaq: ▼5.8%
Dow Jones: ▼5.5%
AUD/USD: 0.6013
