The implementation of the U.S. 'reciprocal tariff' policy has only been in effect for a week, yet it has triggered severe fluctuations in global capital markets. According to Bloomberg, since April 3, the total market value of global stocks has evaporated by over $10 trillion, equivalent to 40% of the annual economic output of the European Union. As the initiating country of the policy, the U.S. stock market has been adversely affected— the overall market value of the technology sector has shrunk by $1.65 trillion, with Apple Inc. experiencing a 23% plunge in stock price over four trading days due to its heavy reliance on overseas markets, marking the largest weekly decline in recent years.
Market analysts point out that the spillover effects of this tariff policy far exceed expectations, impacting not only China-U.S. trade but also transmitting through the global supply chain to economies in Europe, Asia, and beyond. Investors are concerned that if the trade war continues to escalate, it may trigger a wave of profit warnings from multinational corporations, further intensifying market volatility. Currently, global stock markets have entered a technically corrective zone, and investors are closely monitoring the Fed meeting minutes to look for clues on policy hedging.
