European markets steadied on Tuesday following a sharp sell-off in US stocks triggered by investor fears over the economic impact of President Donald Trump’s tariffs.
The US S&P 500 dropped nearly 3% on Monday, while the Dow Jones Industrial Average fell 2% and the tech-heavy Nasdaq plummeted 4%, with major technology stocks—including Tesla, Nvidia, Meta, and Amazon—seeing significant losses. Tesla led the declines, sinking 15.4% as concerns over slowing global demand mounted.
Despite initial jitters in Asia, markets showed resilience. Japan’s Nikkei 225 closed down 0.6%, while South Korea’s Kospi ended 1.3% lower. Meanwhile, in Europe, Germany’s Dax rose 0.4% and France’s CAC 40 gained 0.2%, though London’s FTSE 100 dipped slightly by 0.1%.
The sell-off was exacerbated by Trump’s weekend comments acknowledging a “period of transition” in the economy, sparking concerns about a potential recession. White House officials scrambled to reassure investors, with economic adviser Kevin Hassett insisting that Trump’s policies—including tariffs on China, Mexico, and Canada—were boosting domestic manufacturing.
“The previous notion of Trump being a stock market president is being re-evaluated,” said Charu Chanana, an investment strategist at Saxo. Analysts warned that uncertainty over Trump’s trade policies could continue to weigh on investor sentiment, with traders adopting a more defensive stance amid fears of slowing growth.
Trump, however, remained optimistic, telling Fox News that his economic agenda was bringing “wealth back to America.” He is expected to address concerns in a press conference later this week.
Related Readings:
#Markets #Relief #SellOff