The US equity markets are on a path of caution while shrouded by concerns. This, as the markets closed for the day’s proceedings on Thursday, March 27, the marquee American indices closed in the red with more than marginal cuts, while not paving the way for a major sell-off.
No Time For Caution
This comes to pass at a time, when Trump and his tariff-orientated policies have only gotten graver over the period of the past few days and weeks.
Most recently, while the security breach news occupied the news media, Trump announced another set of flat and far-reaching tariffs, this time a flat 25 per cent tariff on all automobiles entering the United States.
In addition, the global trading ecosystem is also moving towards a space which is only bound to get more volatile with time.
The deadline for the major tariff is nearing, and the markets are arguably feeling the jitters. Trump had previously announced reciprocal tariffs, along with other measures that are expected to kick in from April 2.
Not just that, the two much-publicised tariffs on Canada and Mexico, which were put on hold, are also expected to take place next week.
In addition to that, the US interest rates continue to remain at 4.25 per cent 4.50 per cent.
These developments and the potential developments are leading the global economy into a tricky space.
As a result of this, Wall Street saw its fortunes decline further in the latest trading session.
Dow Jones Industrial Average
The Dow Jones Industrial Average, which is the oldest of all, started the day with cuts and continued to slow down further.
The sluggish progress continued before closing for the day with a decline of 0.37 per cent or 155.09 points, taking the overall value of Dow to 42,299.70 points.
S&P 500
The S&P 500 was no different, as the index closed for the day with relatively minor cuts amounting to 0.33 per cent or 18.89 points.
This took one of the most consequential indices in the world to 5,693.31 points.
Nasdaq Composite
The tech-heavy Nasdaq Composite index, despite making some movement in the middle of the trading session, closed in red with an even bigger decline than the other two indices.
The index closed at 17,804.03, with a total dip of 0.53 per cent or 94.98 points.
Another crucial index, the Russell 2000, that houses all the mid-scale companies also closed with a decline in their overall value. The index dropped to 2,065.70 points, after a total decline of 8.14 points or 0.39 per cent.
