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NEW YORK (AP) — Stocks are sharply swinging down, up, then down again on Wall Street as markets try to assess the potential damage from President Donald Trump’s global trade war. The Dow Jones Industrial Average briefly erased a morning loss of 1,700 points, shot up more than 800 points, then went back to a loss of 414 points. The S&P 500 likewise made sudden up-and-down lurching movements and was down 1.3% in the first hour of trading. The Nasdaq composite was down 0.8% That followed sharp drops around the world as worries rise about whether Trump’s trade war will torpedo the global economy.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
NEW YORK (AP) — The losses are only worsening for financial markets worldwide as worries rise Monday about whether President Donald Trump’s trade war will torpedo the global economy.
The S&P 500 was down 3.8% in early trading, coming off its worst week since COVID 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% 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% 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 9:35 a.m. Eastern time, and the Nasdaq composite was 4.2% lower.
The financial pain once again hammered investments around the world. Stocks in Hong Kong plunged 13.2% for their worst day since 1997. A barrel of benchmark U.S. crude oil briefly dropped below $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 $78,000, down from its record above $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.
On Sunday Trump told reporters aboard Air Force One that he does not want markets to fall. But he also said he wasn’t concerned about a sell-off, saying “sometimes you have to take medicine to fix something.”
Some investors are holding onto hope that Trump may lower his tariffs after negotiating with other countries, and Trump said Sunday that he’s heard from leaders “dying to make a deal.” A drop in tariffs relatively soon could help avoid a recession, but whether that can happen is still uncertain.