10h05 ▪
3
min read ▪ by
The US stock market is plunging into the red this Wednesday, as Donald Trump considers declaring a national economic emergency to impose universal tariffs. This prospect rekindles fears of a new trade war, overshadowing mixed data on US employment.
Markets under pressure from Trump’s protectionist threats
The New York stock exchange (Wall Street) shows a downward trend on January 8, 2025, with the Dow Jones falling by 0.1% to 42,497.9 points and the Nasdaq Composite also dropping 0.1% to 19,472.1 points.
According to CNN’s reports, Donald Trump is preparing a declaration of national economic emergency aimed at implementing “universal tariffs,” a drastic measure intended to reduce the US trade deficit.
This alarming prospect for international trade even overshadows the latest private employment figures. The ADP report reveals only the creation of 122,000 jobs in December, below the 130,000 expected, suggesting a possible slowdown in the labor market that could encourage the Fed to speed up its rate cuts.
The tense geopolitical context is reflected in the VIX volatility index, which spikes nearly 5% to 18.6 points, while investors seek refuge in the dollar, pushing the euro toward the 1.03 range.
Defensive sectors hold up in an anxious market
The negative sentiment spreads across various sectors, with eight of the eleven major indices of the S&P 500 moving into negative territory. Only the defensive sectors are managing to stay afloat: healthcare (+0.4%), commodities (+0.2%), and real estate (+0.1%).
Communications (-1%), utilities (-0.6%), and energy (-0.2%) are experiencing the most significant declines. The energy sector is particularly suffering from falling oil prices, with WTI dropping 0.6% to $73.8 per barrel, despite a significant decrease in US inventories.
In the bond market, fears are driving investors toward safe havens, leading to a decline in the yield of 10-year Treasury bonds, which returns to 4.68%, after reaching its highest levels since April the previous day.
The post-election euphoria that had propelled indices to record levels now seems to be giving way to increased caution, as investors reassess the potential impact of protectionist policies on the global economy and inflation.
Maximize your Cointribune experience with our “Read to Earn” program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
Passionné par le Bitcoin, j’aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l’outil qui peut rendre cela possible.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
