At 10:57 AM Eastern Time (ET), President Trump announced a significant increase in tariffs on China. Just 3 minutes later, at 11:00 AM Eastern Time, the S&P 500 had lost 700 BILLION DOLLARS in market value! 😱

What's going on?

Tariffs are a type of tax imposed on imported goods. By increasing taxes on China, the U.S. government is making Chinese goods more expensive for American consumers and businesses. This causes panic in the market, as investors are concerned it will harm U.S. businesses that rely on Chinese goods.

Why is the market down?

🔹 Concerns about trade war: Investors are worried that increased tariffs will harm global trade and disrupt supply chains.

🔹 Market reaction: The market reacts quickly to news like this, especially with concerns about major companies relying on China for business.

What does this mean for the economy?

🔹 Stock market volatility: The market is expected to continue fluctuating as people react to this news.

🔹 Global impact: The U.S. and China are major global players, so this could affect the economy worldwide.

🔹 Economic recession: Higher tariffs could lead to reduced spending and slower economic growth.

Stock market:

  • S&P 500: Closed at 6,552.51, down 2.7% - the worst day since April.

  • Dow Jones: Down 878 points, or 1.9%.

  • Nasdaq: Decreased by 3.6%, marking the largest drop since April.

👉 This sell-off stems from concerns about escalating trade tensions and the risk of economic recession.

📊 Cryptocurrency Market:

  • $BTC: Currently at $112,362, down 7.3%.

  • $ETH: Trading at $3,800.64, down 12.7%.

Over $6 billion in cryptocurrency was liquidated within an hour after the tariff announcement, causing significant volatility in digital asset prices. and over $20 billion has been liquidated in the past 24 hours.

Over $6 billion in cryptocurrency was liquidated within an hour after the tariff announcement, causing significant volatility in digital asset prices. and over $20 billion has been liquidated in the past 24 hours.

What Should You Do?

🔹 Don't panic: Market fluctuations are normal. Don't rush to sell stocks.

🔹 Think long-term: Short-term declines do not always mean long-term trouble. Stick to your plan.

🔹 Continuous updates: As the situation develops, keep an eye on the news to make informed decisions.