The US stock market closed lower again on Tuesday, despite opening with solid gains earlier in the day. This is according to MarketWire. The S&P 500 index, which includes the largest US stocks, closed down about 1.6 percent. Earlier in the day, it was up 4.1 percent. On Monday, the same index closed down slightly by about 0.28 percent.
The decline comes after a day when US President Donald Trump took his threats of increased tariffs against China seriously and announced a tariff of 104 percent. According to the White House, the increased tariff rate will begin on Wednesday, April 9. The reason for the S&P 500 index's temporary rise earlier Tuesday is, according to MarketWire, that Japan and South Korea have offered to enter into negotiations on US tariffs on their goods. This tariff will also be introduced from Wednesday.
Tuesday was calmer than the turbulent Monday, but was still marked by the tariffs. When the market was at its lowest, it fell by 4.7 percent - and at its highest it rose by 3.4 percent - writes MarketWire. The Dow Jones and Nasdaq also fell - by 0.8 and 2.2 percent, respectively.
Apple, which has a large part of its production in China, fell by 5 percent - and the electronics giant has thus lost 23 percent - since Trump announced the tariffs. Microsoft has now overtaken Apple in value. According to MarketWire, Microsoft fell by 0.9 percent on Tuesday and has lost 7 percent in the same period.
The fall in the S&P index of 1.6 percent emphasizes that one cannot breathe a sigh of relief, says investment director at Sampension Henrik Olejasz Larsen in a written comment.
- The markets are still characterized by great uncertainty, which is not driven by fundamental economic conditions, but by geopolitical tactics.
- This means that announcements, rumors and news in the tariff war can cause significant fluctuations in both upward and downward directions, which we have seen in recent days and also on Tuesday, he says.
Since the middle of last week, when Trump presented the American tariffs on goods from countries almost all over the world, the global stock markets have been in a downturn. On Tuesday, however, the Danish C25 stock index regained some of its losses with an increase of 2.4 percent.
jel /ritzau/
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