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\n Stocks across the globe closed lower Friday after President Donald Trump unveiled his plan for levying tariffs<\/a> on trading partners, threatening to upend decades of international cooperation.\n <\/p>\n \n The Dow tumbled 542 points, or 1.23%. The broader S&P 500 fell 1.6% and the tech-heavy Nasdaq Composite slipped 2.24%.\n <\/p>\n \n The S&P 500 and Nasdaq posted their biggest single-day loss since May and April, respectively. The indexes also snapped two-week winning streaks.\n <\/p>\n \n The Dow posted its biggest single-day drop in over a month. The blue-chip index fell every day this week and posted its worst week since early April.\n <\/p>\n \n Trump late Thursday released his long-awaited plan for tariffs on US trading partners. The president laid out tariffs ranging from 10% to 41% on countries from Chile to Syria, set to take effect August 7 \u2014 which was later than expected.\n <\/p>\n \n Investors in recent months have begun to try and look past Trump\u2019s tariffs, betting the president will back down on his most daunting threats. As the president has tempered his approach \u2014 including once again delaying the start of tariffs \u2014 markets have tried to adjust to the prospect of a more protectionist global order. But the scope and unprecedented nature of the tariff campaign portends to roil the global economy and markets.\n <\/p>\n \n \u201cThe market is tired of the tariff drama,\u201d Peter Ricchiuti, senior professor of finance at Tulane University, told CNN. \u201cThere is also the recognition that the tariff damage will get worse.\u201d\n <\/p>\n \n \u201cCompanies shipped an enormous amount of product before some of the tariffs were implemented,\u201d Ricchiuti said. \u201cThis inventory will be winding down and prices will be reflecting the tariffs.\u201d\n <\/p>\n \n While Wall Street had been expecting Trump\u2019s tariffs, investors are assessing the widespread implications for business activity, international trade and global economic growth.\n <\/p>\n \n \u201cOur base case remains that the US effective tariff rate should settle at around 15% by the end of the year, and the economic impact is likely to prove manageable,\u201d Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management, said in a note.\n <\/p>\n \n \u201cStill, tariffs are a headwind for global trade and growth, and they have started to contribute to a rise in inflation,\u201d Hoffmann-Burchardi said. \u201cWith markets already pricing in much of the good news on the trade front, we expect stock volatility to pick up in the near term.\u201d\n <\/p>\n \n US stocks were under further pressure Friday and Treasury bonds rallied after the latest jobs data showed the economy added 73,000 jobs<\/a> in July, which was less than expected.\n <\/p>\n \n The 10-year and 30-year Treasury yields fell to 4.21% to and 4.8%, respectively, as investors snapped up bonds in a flight to safety and to lock in high rates.\n <\/p>\n \n Traders on Friday afternoon were pricing in a 85% chance the Fed cuts rates in September, according to the CME FedWatch Tool. That\u2019s compared to just a 38% chance on Thursday.\n <\/p>\n \n The surge in bets on Fed rate cuts comes after the jobs report also showed an enormous downward revision to job growth in May and June.\n <\/p>\n \n Meanwhile, the US dollar dropped. The dollar index, which measures the dollar\u2019s strength against six major foreign currencies, fell 1.2%. Gold, a safe haven during uncertainty, rallied 1.85%.\n <\/p>\n \n Wall Street\u2019s fear gauge, the VIX, surged 25% and hit its highest level in over one month as volatility returned to markets.\n <\/p>\n \n \u201cThe market was out of gas,\u201d Keith Lerner, co-chief investment officer at Truist Wealth, told CNN\u2019s Matt Egan. \u201cIt\u2019s a case of high expectations being met with a little bit of bad news.\u201d\n <\/p>\n \n \u201cThe market was priced for a smooth ride with little disruptions,\u201d he said. \u201cWe\u2019re going through a gut check.\u201d\n <\/p>\n \n US stocks on Friday followed stocks in Europe and Asia lower.\n <\/p>\n \n Europe\u2019s benchmark Stoxx 600 index sank 1.89%, while Germany\u2019s DAX index and France\u2019s CAC 40 index dropped 2.66% and 2.91%, respectively.\n <\/p>\n \n Each of the indexes posted their biggest single-day loss<\/a> since early April.\n <\/p>\n \n In Asia, markets were only modestly lower, except in South Korea<\/a>, where the benchmark index tumbled 3.88%. Hong Kong\u2019s Hang Seng index dropped 1.07%, Japan\u2019s Nikkei 225 fell 0.66% and Taiwan\u2019s benchmark index sank 0.46%.\n <\/p>\n \n \u201cToday is merely the next episode in Trump\u2019s tariff story \u2013 it\u2019s unwelcome, hence the market dip; but it\u2019s not entirely unexpected, hence the lack of a full market crash,\u201d Russ Mould, investment director at AJ Bell, said in a note.\n <\/p>\n \n Global markets turned lower as Trump announced his tariff plans, although losses so far were relatively contained compared to the intense turmoil of early April when there was an unusual and simultaneous sell-off in US stocks, bonds and the dollar.\n <\/p>\n \n \u201cWhile the dollar sell-off in April included a degree of shock and surprise that wont be replicated now, we would still conclude tariffs as ultimately dollar negative over time as it hits real growth, lowers real yields and will encourage portfolio diversification,\u201d Derek Halpenny, head of research for global markets at MUFG, said in a note.\n <\/p>\n \n Investors have been gearing up for Trump\u2019s long-awaited tariff plan. Stocks had been on a steady climb higher in recent months, but the momentum began to stall<\/a> in July. The S&P 500 rose just over 2% in July after climbing 6% in May and 5% in June.\n <\/p>\n \n Many investors have embraced the \u201cTACO\u201d trade, betting that \u201cTrump always chickens out\u201d on his biggest tariff threats. That trade has also faced hiccups, though, as the president has pressed forward with high levies on goods like steel and aluminum.\n <\/p>\n \n \u201cTariff worries are back in focus, and even though the market has remained resilient, we are still in a headline-sensitive market,\u201d Glen Smith, chief investment officer at GDS Wealth Management, said in an email.\n <\/p>\n \n While investors are concerned about the prospect of tariffs, they might also want to wait and see evidence of the impact on inflation or the labor market in the economic data, Zachary Hill, head of portfolio management at Horizon Investments, said.\n <\/p>\n![\"Wall](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/08\/ap25181555169451.jpg\")
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