Dow Jones plummets after Trump announcement on tariff hike

The Dow Jones dropped 481.54 points to 24,537.43 units; the S & P yielded 46.25 points to 2,667.53 units; and the Nasdaq lost 129.37 points to 7,141.74 units
Emen.- The shares on Wall Street fell sharply in afternoon trading on Thursday , after the US president, Donald Trump said his country will impose tariffs on imports of steel and aluminum, adding the fear of war commercial to the growing concern about higher interest rates.

After a confusing day of reports and denials, the president said that the United States will impose tariffs of 25% on steel imports and 10% on aluminum imports next week.

During a meeting at the White House with representatives of the US steel industry, Trump announced that the rates would rise.

"I will sign it in the next week. And you will have protection for a long time. You will have to rebuild your industry, that's all I'm asking for, "the president told the assembled businessmen.

This situation increased the shares of local steel producers up to 12%, but dropped 2% or more to heavyweights such as Boeing and Caterpillar, as investors fear that they will face higher costs of raw materials and barriers. commercial in other places.

The president of the Federal Reserve in New York, William Dudley, also added to the evidence that under the presidency of Jerome Powell the entity will seek to adjust its monetary policy with four rate hikes this year , above what was initially expected.

At 19:07 GMT, all major sectors of the S & P 500 index fell , along with 29 of the 30 components of the Dow Jones Industrial Average.

The Dow Jones dropped 481.54 points , or 1.95%, to 24,537.43 units; the S & P yielded 46.25 points , or 1.7%, to 2,667.53 units; and the Nasdaq lost 129.37 points , or 1.78%, to 7,141.74 units.

Earlier, Powell provided a boost to the market by assuring Congress that the entity sees no evidence of wage inflation or that the US economy is overheating .

The acceleration of inflation and bond yields were the main concern after Wall Street ended a turbulent February, month in which the S & P posted its first monthly loss in 11 months.