The American stock market is sinking into the red this Wednesday, as Donald Trump plans to declare a national economic emergency to impose universal customs duties. The prospect revives fears of a new trade war, overshadowing mixed US employment data.
Markets under pressure in the face of Trump's protectionist threats
The New York Stock Exchange (Wall Street) is showing a downward trend on January 8, 2025, with the Dow Jones falling 0.1% to 42,497.9 points and the Nasdaq Composite also losing 0.1% to 19,472.1 points. .
According to the news from CNNDonald Trump is reportedly preparing a declaration of national economic emergency aimed at implementing “universal tariffs”, a drastic measure intended to reduce the US trade deficit.
This worrying outlook for international trade even overshadows the latest private employment figures. The ADP report reveals the creation of only 122,000 jobs in December, below the 130,000 expected, suggesting a possible slowdown in the labor market which could encourage the Fed to accelerate its rate cuts.
The tense geopolitical context is reflected in the VIX volatility index, which jumped almost 5% to 18.6 points, while investors took refuge in the dollar, pushing the euro towards the 1.03 zone.
Defensive sectors hold up in an anxious market
Negative sentiment is spreading across sectors, with eight of the eleven major S&P 500 indexes trading in negative territory. Only defensive sectors are doing well: health (+0.4%), raw materials (+0.2%) and real estate (+0.1%) manage to stay afloat.
Communications (-1%), community services (-0.6%) and energy (-0.2%) showed the biggest declines. The energy sector is particularly suffering from the fall in oil prices, with WTI falling 0.6% to $73.8 per barrel, despite a significant drop in US stocks.
On the bond market, fears are pushing investors towards safe havens, leading to an easing of the yield on 10-year Treasury bonds which falls to 4.68%, after reaching its highest levels since April the day before.
The post-election euphoria that lifted indexes to record highs now appears to be giving way to more caution, as investors reassess the potential impact of protectionist policies on the global economy and inflation.
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