Economy Middle East
By Yara Abi Farraj
Share
Home Sector Markets Stocks sink, dollar falls as tariff-induced recession fears shake investor confidence

Stocks sink, dollar falls as tariff-induced recession fears shake investor confidence

Nvidia declined 5.91 percent, Apple fell 4.24 percent to $190.42, and Microsoft dipped 2.34 percent to $381.35
Stocks sink, dollar falls as tariff-induced recession fears shake investor confidence
The dollar declined to its lowest in 10 years against the Swiss franc and to a six-month low against the yen

Published: Fri 11 Apr 2025, 9:34 AM

The global stock market fell while the U.S dollar continued its decline on Friday as the U.S.-China trade war raised concerns over a deep recession. Fear among investors has propelled them towards safe-haven assets like the Swiss franc and gold, which scaled a new high following U.S. President Donald Trump‘s move to temporarily lower tariffs on many countries but raise charges on Chinese imports to 145 percent.

The 10-year U.S. treasury yield rose to 4.475 percent, gaining over 40 basis points this week, the biggest increase since 2001, LSEG data showed. Analysts and investors said that this week’s sharp sell-off in treasuries and the weaker dollar are evidence that confidence in the world’s biggest economy has been shaken.

Asia, U.S. stocks fall

In the Asian stock market, Japan’s Nikkei fell 4.23 percent to 33,144.12, while South Korea’s SE KOPSI Index dipped 1.7 percent. The broader Topix index declined 3.94 percent to 2,439.45. Notably, Hong Kong’s Hang Seng Index gained 0.98 percent to 20,883.66, the Nifty 50 rose 1.63 percent, and China’s CSI300 Index rose 0.16 percent.

In Europe’s stock market, the EUROSTOXX 50 was up 4.26 percent to 4,818.92, while the FTSE 100 Index gained 3.04 percent to 7,913.25.

Meanwhile, the U.S. stock market saw the S&P 500 dip 3.46 percent to 5,268.05 while Nasdaq fell 4.31 percent. The Dow Jones Industrial Average also lost 2.5 percent.

Tech shares decline

Tech stocks also witnessed a major decline. Nvidia shares declined 5.91 percent, Apple fell 4.24 percent to $190.42, and Microsoft dipped 2.34 percent to $381.35.

In addition, Alphabet lost 3.53 percent, Tesla plummeted 7.27 percent, Meta was down 6.74 percent and Amazon decreased by 5.17 percent to $181.22.

Read: Dubai gold prices surge AED7.5 as global rates surpass $3,200

U.S. dollar sinks

Amid the decline in stocks, the U.S. dollar witnessed major selling in the past few weeks, with traders seeking safety in the Japanese yen, the Swiss franc as well as the euro. On Friday, the dollar declined to its lowest in 10 years against the Swiss franc and to a six-month low against the yen. Meanwhile, the euro surged 1.7 percent to $1.13855, a level last seen in February 2022.

The dollar index, which measures the greenback against six other units, fell below 100 for the first time since July 2023.

Markets did not price the data from the U.S. Labor Department, which showed consumer prices unexpectedly falling in March as expectations for increased inflation due to tariffs rose.

In commodities, gold prices scaled a record high on safe haven flows. It was last up 1.69 percent at $3,215.03 per ounce.

Meanwhile, oil prices fell on Friday after settling more than $2 per barrel lower on Thursday. As of 4:31 GMT, Brent futures were down 0.52 percent to $63 a barrel, while U.S. West Texas Intermediate crude futures lost 0.57 percent to $59.73. Brent is set to fall 4 percent this week, adding to an 11 percent drop last week, while WTI is set to decline 3.8 percent, after also falling 11 percent in the previous week.

The stories on our website are intended for informational purposes only. Those with finance, investment, tax or legal content are not to be taken as financial advice or recommendation. Refer to our full disclaimer policy here.