MUMBAI: US President Donald Trump's flip-flop on tariff rates on Wednesday took global investors on a wild ride across markets that in turn created several records for some of the leading indices and stocks markets.
Although investors were relieved by the stock rally, most market commentators are still doubtful if the current volatility will subside. This is because the pace of policy changes by Trump and the wide range of areas he covered in less than three months, has left most business leaders doubting the stability of decisions by Trump.
"Beneath the current euphoria lies a more stubborn truth: Markets may breathe easier in the short term, but the long-term damage to trust is real," said Nigel Green, CEO, deVere Group, a London-based global financial advisory. The US markets' trading pattern in Thursday's early trades gave credence to what experts were thinking. In opening trades, rather than building on Wednesday's record-breaking rally, the US market was deep in the red (down 4%).
US markets which on Wednesday broke several records - S& jumped 9.5%, the biggest single-day gain since the global financial crisis in 2008-09; Dow Jones Index shot up by 2,900 points, the single-biggest one-day gain ever for one of the world's most tracked indices; and tech-heavy Nasdaq Composite jumped 12.2%, its biggest single-session jump in nearly a quarter of a century - reversed gains a day later.
By mid-session Thursday, Dow was down nearly 1,800 points (4.4%), Nasdaq was down over 1,000 points (6.1%) and S& was trading 280 points (5.2%) in the red.
Earlier, during Wednesday's rally, the magnificent 7 (Mag 7) stocks added $1.5 trillion in just one session, of which $440 billion was by the chip giant Nvidia alone. For perspective, Nvidia's one-day gain in market value is almost equal to India's current market capitalisation of $454 billion, BSE data showed.
"We're now all witness to brinksmanship's costs," a report on Yahoo Finance noted. "The stock market is still well off its highs; retirees are drawing from smaller pools of savings, uncertainty abounds, businesses have already altered investments and hiring, the US foreign relations are strained, and we're still left with a lot more tariffs and an unresolved trade war with China ." Dalal Street, however, was saved from any rub-off effect from Wednesday's rally on Wall Street since Indian markets were closed for trading.
When markets open on Friday, trading is expected to be weighed down by Thursday's close on Wall Street, market players said.
Although investors were relieved by the stock rally, most market commentators are still doubtful if the current volatility will subside. This is because the pace of policy changes by Trump and the wide range of areas he covered in less than three months, has left most business leaders doubting the stability of decisions by Trump.
"Beneath the current euphoria lies a more stubborn truth: Markets may breathe easier in the short term, but the long-term damage to trust is real," said Nigel Green, CEO, deVere Group, a London-based global financial advisory. The US markets' trading pattern in Thursday's early trades gave credence to what experts were thinking. In opening trades, rather than building on Wednesday's record-breaking rally, the US market was deep in the red (down 4%).
US markets which on Wednesday broke several records - S& jumped 9.5%, the biggest single-day gain since the global financial crisis in 2008-09; Dow Jones Index shot up by 2,900 points, the single-biggest one-day gain ever for one of the world's most tracked indices; and tech-heavy Nasdaq Composite jumped 12.2%, its biggest single-session jump in nearly a quarter of a century - reversed gains a day later.
By mid-session Thursday, Dow was down nearly 1,800 points (4.4%), Nasdaq was down over 1,000 points (6.1%) and S& was trading 280 points (5.2%) in the red.
Earlier, during Wednesday's rally, the magnificent 7 (Mag 7) stocks added $1.5 trillion in just one session, of which $440 billion was by the chip giant Nvidia alone. For perspective, Nvidia's one-day gain in market value is almost equal to India's current market capitalisation of $454 billion, BSE data showed.
"We're now all witness to brinksmanship's costs," a report on Yahoo Finance noted. "The stock market is still well off its highs; retirees are drawing from smaller pools of savings, uncertainty abounds, businesses have already altered investments and hiring, the US foreign relations are strained, and we're still left with a lot more tariffs and an unresolved trade war with China ." Dalal Street, however, was saved from any rub-off effect from Wednesday's rally on Wall Street since Indian markets were closed for trading.
When markets open on Friday, trading is expected to be weighed down by Thursday's close on Wall Street, market players said.
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