Fears of a "Trumpcession" loom over Wall Street, with President Donald Trump's bold tariff policies casting a shadow on global markets and fueling concerns of an economic downturn.
On Wednesday, the 25-percent steel and aluminum tariffs imposed by the Trump administration on all trading partners officially went into effect, with no exemptions. This policy quickly provoked retaliation from Canada and the European Union (EU), which then prompted Trump to threaten a 200-percent tariff on alcoholic products from the EU on Thursday.
These developments, along with Trump's recent "on-and-off" tariff policies toward Mexico and Canada, have led to a sharp drop in the U.S. stock market over the past few weeks, indicating a significant decline in investor confidence.
Investor confidence has taken a hit, leading to sharp losses among the "Magnificent 7" tech giants.
The term "Magnificent 7" stocks refers to seven dominant tech companies - Apple, Microsoft, Amazon, Alphabet (Google's parent company), Meta (formerly the Facebook company), Nvidia, and Tesla - that have played a crucial role in driving market growth.
CNBC said on Friday that these companies have lost a combined 2.7 trillion U.S. dollars value over the past three weeks.
Apple, Nvidia, Microsoft, Amazon, Alphabet, Tesla, and Meta have all seen double-digit declines, with Tesla plunging over 50 percent this year.
Meanwhile, the Dow, S and P 500, and Nasdaq remain under pressure, each posting weeks of consecutive losses.
Fears of "Trumpcession" intensify as Wall Street grapples with economic uncertainty
Saudi Arabia and Pakistan have reaffirmed that they will not seek normalization of ties with Israel, rejecting U.S. President Donald Trump's call for the two countries to join the Abraham Accords.
Saudi Arabia's position on the Palestinian issue remains unchanged, a Saudi source told Al Arabiya TV on Monday.
The source affirmed the need for "an irreversible pathway to a Palestinian state".
The remarks came after U.S. President Donald Trump urged Muslim-majority and regional countries to normalize relations with Israel and join the Abraham Accords before the U.S. reaches a peace agreement with Iran.
Saudi Arabia has repeatedly said it would not normalize relations with Israel without the establishment of a Palestinian state.
Pakistani Defense Minister Khawaja Asif said on Tuesday that Pakistan will not join any agreement to normalize ties with Israel, adding that the country will not accept any deal that "conflicts with its fundamental ideologies".
Trump on Monday urged Saudi Arabia, Qatar, Egypt, Jordan, Turkey and Pakistan -- countries involved in mediating U.S.-Iran talks -- to immediately join the Abraham Accords, warning that otherwise they should not participate in the mediation.
He added that if a U.S.-Iran deal is reached, Iran should also join the agreement.
The Abraham Accords, brokered by the United States in 2020 during Trump's first term, were established between the Israeli government and Arab countries including the United Arab Emirates, Bahrain, Sudan and Morocco, aimed at rapidly advancing the normalization of relations between Israel and Arab countries.
Before the outbreak of the latest round of Israeli-Palestinian conflict in October 2023, the United States had been pushing for normalization between Saudi Arabia and Israel.
After the conflict erupted, Saudi Arabia suspended normalization talks with Israel.
Saudi Arabia, Pakistan reject Trump's Abraham Accords demand
