Stock markets around the globe have suffered heavy losses, following a dramatic plunge on Wall Street that saw the US Dow Jones Index drop by more than 3.15%, it’s steepest single-day fall since early February.
The BBC reports that the fall on Wall Street was precipitated in part by the US Federal Reserve decision to raise interest rates, “a move that tends to make it more expensive for companies to borrow, hurting bottom lines and turning stocks into a less attractive investment”.
Rising bond yields, fears of a global economic slowdown and escalating trade tensions between the US and a number of its trading partners also contributed to the steep losses, the Wall Street Journal says.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Donald Trump played down the plunge on US markets as a “correction”, while also repeating his ongoing criticism of the US Fed decision to raise interest rates.
“Actually it’s a correction that we’ve been waiting for a long time, but I really disagree with what the Fed is doing. I think the Fed has gone crazy,” Trump said.
-
Antibiotic resistance: the hidden danger on Ukraine’s frontlinesUnder The Radar Threat is spreading beyond war zones to the ‘doorstep’ of western Europe
-
‘Capitalism: A Global History’ by Sven Beckert and ‘American Canto’ by Olivia NuzziFeature A consummate history of capitalism and a memoir from the journalist who fell in love with RFK Jr.
-
Who will the new limits on student loans affect?The Explainer The Trump administration is imposing new limits for federal student loans starting on July 1, 2026
-
Hong Kong court convicts democracy advocate LaiSpeed Read Former Hong Kong media mogul Jimmy Lai was convicted in a landmark national security trial
-
How Bulgaria’s government fell amid mass protestsThe Explainer The country’s prime minister resigned as part of the fallout
-
Pakistan: Trump’s ‘favourite field marshal’ takes chargeIn the Spotlight Asim Munir’s control over all three branches of Pakistan’s military gives him ‘sweeping powers’ – and almost unlimited freedom to use them
-
Is Europe finally taking the war to Russia?Today's Big Question As Moscow’s drone buzzes and cyberattacks increase, European leaders are taking a more openly aggressive stance
-
Pushing for peace: is Trump appeasing Moscow?In Depth European leaders succeeded in bringing themselves in from the cold and softening Moscow’s terms, but Kyiv still faces an unenviable choice
-
Femicide: Italy’s newest crimeThe Explainer Landmark law to criminalise murder of a woman as an ‘act of hatred’ or ‘subjugation’ but critics say Italy is still deeply patriarchal
-
Brazil’s Bolsonaro behind bars after appeals run outSpeed Read He will serve 27 years in prison
-
South Africa wraps up G20 summit boycotted by USSpeed Read Trump has been sparring with South Africa in recent months
