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There is chaos in the stock markets. The decline that started last week has continued on Monday as well. This is the third session when the markets have fallen after Trump's announcement of tariffs. In these 3 days, the value of about 9.5 lakh crore dollars has been wiped out from the global market, which is equivalent to about Rs 790 lakh crore. This figure of loss may increase because the signals for the American markets on Monday are also negative.
What happened in the market?
In the domestic market, the VIX i.e. the fear index crossed the level of 22 with a gain of more than 65 percent. At the same time, Europe's Stoxx 600 index has fallen by 5 percent. In Monday's trading, Asia saw its worst day since 2008. Amidst this decline, investors are running towards safe havens like US bonds and Japanese Yen. Expectations of interest rate cuts increased . Traders now expect the Federal Reserve to cut interest rates 5 times this year. Even an emergency rate cut is being anticipated. The market feels that a rate cut is possible before the Fed's May meeting to deal with the fear of recession. What did Trump say? Trump told reporters from Air Force One on Sunday to forget the markets for a while. He made it clear that there will be no change in the tariff policy, no matter how much the market falls. Fear and anxiety in the market . Stephen Kemper, Chief Investment Strategist of BNP Paribas Wealth Management, said that now the market is in the mood of 'sell first, think later'. According to him, the market is now looking for that 'maximum pain' level where the administration or the Fed is forced to bow down.
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