Global Markets React to U.S. Tariff Escalation and Federal Reserve Signals

Investors brace for economic uncertainty as tariffs impact markets, while the Federal Reserve hints at potential rate adjustments.

The S&P 500 entered correction territory, down over 10% from its February high, with $4 trillion in market value erased from U.S. stocks.
President Trump threatened 200% tariffs on European alcoholic products, escalating trade tensions with the European Union's retaliatory measures on U.S. goods.
Investors are closely watching the Federal Reserve's upcoming meeting for signs of potential interest rate cuts to address economic slowdown concerns.
China announced measures to boost consumer spending, which lifted Asian and European markets despite the ongoing U.S. stock market slump.
A potential U.S. government shutdown appears to have been averted with progress on a stopgap funding bill, providing temporary relief to market sentiment.