After ‘Black Monday’, today was a good day for the stock market on Tuesday. After the biggest single day fall in the last ten months due to heavy selling on Monday due to fear of deepening trade war at the global level due to US tariffs, there was a stormy rise in the stock market today due to tremendous buying at lower prices in early trade.
Stock Market Bounces Back After Black Monday
Let us tell you that the market had fallen by about 4000 points on Monday. Investors suffered a loss of about Rs 14 lakh crore in a day. However, today on Tuesday, the market recovered to a great extent and jumped by 1500 points during trading. This once again filled the investors with enthusiasm. Meanwhile, a frightening news is coming out.
BlackRock CEO Warns of More Market Decline
Despite a slight rise in global equities, BlackRock CEO Larry Fink has warned that the decline in the market is not over yet. If the fears of recession in America increase, then the market is likely to fall by another 20%. According to Reuters, Fink said at the Economic Club of New York on Monday, “Most of the CEOs I’ve spoken to say we’re probably going into a recession right now.” He blamed heavy tariffs imposed in the US for increasing price rises and inflationary pressures, further worsening market sentiment.
Global Market Reaction and Volatility
Global markets improved on Tuesday, but Fink warned that the worst was not over yet. He said, “This does not mean that we cannot fall another 20% from here. More declines can be seen.” On Tuesday, US S&P 500 futures rose 0.9%, while the benchmark index had performed volatilely with a decline of 0.2% in Monday’s session. Wall Street fluctuated between sharp declines and sharp gains. A report that President Donald Trump was considering a 90-day pause in tariffs for all countries except China briefly boosted markets, but the White House later dismissed it as “fake news”.
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