Global Stock Markets Shocked by Trump's 'Recession Doesn't Matter' Stance

Trump: "We shouldn't worry too much about the stock market for a strong nation"

New York stock market plunges on the 10th (local time)...Nasdaq down 4%

Global stock markets were shocked as it was revealed that U.S. President Donald Trump's tariff policy is not simply a negotiation tool but part of a bigger picture to transform the U.S. economy. As he showed his willingness to risk economic recession for rebuilding a strong American economy, global investors who had expected market-friendly moves joined the selling spree one after another.

On the 10th (local time), the tech-heavy Nasdaq index closed at 17,468.33, plummeting 727.90 points (-4.00%) from the previous trading day. This is the largest drop in 2 years and 6 months since September 13, 2022 (-5.16%). The Dow Jones index closed at 41,911.71, down 890.01 points (-2.08%) from the previous trading day, while the S&P500 index finished at 5,614.56, down 155.64 points (-2.70%).

Notably, the market capitalization of the Magnificent 7, referring to seven large tech companies including Apple, Nvidia, and Tesla that have been supporting the New York stock market, evaporated about $770 billion in just one day.

The selling pressure in the New York stock market came after President Trump revealed over the weekend his willingness to push ahead with tariff policies even at the cost of economic recession and stock price declines to encourage companies to build manufacturing facilities in the United States. President Trump said, "My job is to create a strong nation," adding that "we shouldn't worry too much about the stock market."

Due to recession concerns triggered by President Trump, New York oil prices also closed down more than 1% on the day. West Texas Intermediate (WTI) crude for April delivery, the front-month contract, closed at $66.03 per barrel on the New York Mercantile Exchange, down $1.01 (1.51%) from the previous session. Brent crude for May delivery, the global benchmark, ended at $69.28 per barrel, down $1.08 (1.53%) from the previous session.

Following the U.S. stock market plunge, major Asian stock indices also showed downward trends on the 11th (local time). As of 11:45 AM Korean time, Japan's Nikkei 225 average (-1.74%), Korea's KOSPI (-1.50%), and Taiwan's TAIEX (-1.82%) were all falling.

As of 11:29 AM Korean time, mainland China's Shanghai Composite Index (-0.21%) and the CSI 300 Index (-0.34%), which consists of the top 300 stocks by market capitalization in the Shanghai and Shenzhen markets, were also declining.

New York=Special Correspondent Park Shin-young nyusos@hankyung.com