Global stocks fall for sixth day amid Trump tariffs
Kyiv • UNN
Global stocks continued their decline for the sixth consecutive day, the longest losing streak since September 2023. The reason was new tariffs announced by Donald Trump, which outweighed the optimism from tech giants' reports.
The global stock sell-off continued for the sixth consecutive day – the longest losing streak since September 2023 – as US President Donald Trump's announcement of new tariffs and two days of solid earnings reports from major tech companies failed to lift sentiment, UNN reports, citing Bloomberg.
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The MSCI All Country World Index fell 0.1%, while Asia's regional stock index also declined for the sixth consecutive session – its longest losing streak this year. South Korean stocks fell 3.4%. S&P 500 futures dropped 0.2%, and European futures fell 0.4%. Trump announced a series of new tariffs, including a 10% global minimum and 15% and higher tariffs for countries with a trade surplus with the US.
On Friday, the dollar traded steadily, showing its first monthly gain since Trump took office in January. The Taiwanese dollar is falling for the seventh consecutive day, its longest losing streak since June 2023, after the island received a 20% tariff. The Swiss franc fell slightly after Trump imposed a 39% tariff on the country's exports to the US.
These moves signal that concerns about tariffs and economic growth are beginning to outweigh the optimism driven by artificial intelligence development, which has supported major tech stocks. While AI remains a pillar of long-term optimism, investors are bracing for potential trade disruptions as the US and key partners consider implementing new tariffs.
"This announcement brings clarity on paper, but creates uncertainty in practice," said Charu Chanana, Saxo Markets' chief investment strategist. "While markets now know the numbers, the lack of a clear structure underlying these tariffs and seemingly arbitrary rates only reinforces the sense of policy unpredictability. This makes it difficult for companies and investors to plan for the future."
The White House released a statement just hours before midnight, the deadline set by Trump last month after he suspended his tariffs on individual countries for a second time for negotiations. It is not yet clear when exactly the new rates will take effect.
US stocks fell on Thursday, reversing initial gains from tech company earnings that pushed Microsoft Corp.'s market value above $4 trillion. Apple Inc. shares rose in after-hours trading after increased sales, while Amazon.com Inc. shares fell amid the company's disappointing outlook.
Meanwhile, Trump sent letters to 17 major pharmaceutical companies in an attempt to achieve price reductions, which led to a weakening of their shares on Thursday. Trump is also asking bank executives to submit their proposals for monetizing mortgage giants Fannie Mae and Freddie Mac, including a large public offering, according to sources familiar with the situation.
Market attention will soon turn to Friday's July employment report, which is expected to show that companies are becoming more cautious about hiring. Employment is likely to decline after June's increase, while the unemployment rate is expected to rise to 4.2%.
"Given all the uncertainty, it makes sense for traders and dealers to cut some non-farm investments today," said Gareth Nicholson, investment director at Nomura International Wealth Management.