Wall Street tumbles 1,200 points as Trump’s trade war fuels global market fears

The losses are only worsening for financial markets worldwide as worries rise on Monday about whether President Donald Trump’s trade war will torpedo the global economy.

The S&P 500 was down 3.8 per cent in early trading, coming off its worst week since Covid-19 began crashing the global economy in March 2020. The index, which sits at the heart of many investors’ 401(k) accounts, has lost more than 20 per cent since setting a record less than two months ago.

If the S&P 500 finishes the day below that mark, it’s a big enough drop that Wall Street has a name for it. A “bear market” signifies a downturn that’s moved beyond a run-of-the-mill 10 per cent drop, which happens every year or so, and has graduated into something much more vicious.

The Dow Jones Industrial Average was down 1,343 points, or 3.5, as of 9.35am, and the Nasdaq composite was 4.2 per cent lower.

The financial pain once again hammered investments around the world. Stocks in Hong Kong plunged 13.2 per cent for their worst day since 1997. A barrel of benchmark US crude oil briefly dropped below US$60 for the first time since 2021, hurt by worries that a global economy weakened by trade barriers will burn less fuel. Bitcoin sank below US$78,000, down from its record above US$100,000 set in January, after holding steadier than other markets last week.

It’s all a slap in the face to Wall Street, not just because of the sharp losses it’s taking, but because it suggests Trump may not be moved by its pain. Many professional investors had long thought that a president who used to crow about records reached under his watch would pull back on policies if they sent the Dow reeling.