The Warsaw Stock Exchange (WSE) suspended trading for an hour on Monday as world markets shed billions in value following the introduction of unexpectedly high U.S. tariffs over the weekend.
The WSE said it had halted trading on all markets between 15:15 and 16:15 local time due to “security of trading,” having earlier declared “exceptional market conditions” due to extreme volatility.
Prior to the pause, Warsaw’s blue-chip WIG-20 index had plummeted by as much as 7% and was 2% down on its previous closing price before the halt, which took effect 15 minutes before U.S. markets opened.
Following resumption of trading at 16:30, the WIG-20 lost a further 0.5%. Both of the exchange’s main indexes closed the day almost 1.5% down, the Polish Press Agency reported.
In the U.S., the S&P 500 — an index that tracks the performance of the 500 top U.S. companies — was down 3.8% in early trading on Monday, having slumped by 20% from its record close, set less than two months ago.
Meanwhile, the Dow Jones Industrial Average was down 3.5% early on Monday and the Nasdaq composite, which focuses mainly on technology firms, was 4.2% lower.
If the S&P 500 ends the day below that mark it will signify an official ‘bear market.’ This term refers to a downturn where a market’s value has dropped by more than 20% since its last peak – and where falling values encourages the sale of shares. It can be a sign of pessimism about the economy.
Prior to the pause, Warsaw’s blue-chip WIG-20 index had plummeted by as much as 7% and was 2% down on its previous closing price before the halt, which took effect 15 minutes before U.S. markets opened.
Following resumption of trading at 16:30, the WIG-20 lost a further 0.5%. Both of the exchange’s main indexes closed the day almost 1.5% down, the Polish Press Agency reported.
In the U.S., the S&P 500 — an index that tracks the performance of the 500 top U.S. companies — was down 3.8% in early trading on Monday, having slumped by 20% from its record close, set less than two months ago.
Meanwhile, the Dow Jones Industrial Average was down 3.5% early on Monday and the Nasdaq composite, which focuses mainly on technology firms, was 4.2% lower.
If the S&P 500 ends the day below that mark it will signify an official ‘bear market.’ This term refers to a downturn where a market’s value has dropped by more than 20% since its last peak – and where falling values encourages the sale of shares. It can be a sign of pessimism about the economy.
Global stocks plummeting
Around the world, the picture was similar. In Hong Kong, stocks were down 13.2%, marking the exchange’s worst day since 1997. A barrel of U.S. crude oil, a benchmark commodity, fell below $60 for the first time since 2021, and Bitcoin sank to less than $78,000 having set a new record of more than $100,000 in January.
In Europe, London’s main index, the FTSE100, shed 6% before recovering slightly, while Germany’s Dax, France’s CAC 40 and Italy’s FTSE MIB also all lost around 6% of their value.
Over in Russia, stocks slipped for the fourth consecutive day with the Moscow Exchange (MOEX) Russia Index down 3.91% by early afternoon. It closed 8.5% down on Friday having lost $23.7 billion in two days due to the falling oil price.
Many traders had hopes that Trump would walk back on his tariff policy, but he appeared recalcitrant on Sunday despite almost $6 trillion having been wiped off U.S. stock values, telling reporters aboard Air Force One: “Sometimes you have to take medicine to fix something.”
Investors now think that a recession is more likely. Goldman Sachs raised the odds of a U.S. recession from 35% to 45%, the second time it has increased its forecast in a week, amid a growing chorus of such predictions by investment banks, Reuters reported.
Goldman had raised its estimate from 20% to 35% early last week on fears that U.S. President Donald Trump's planned tariffs would roil the global economy. Days later, Trump announced steeper-than-expected duties, which have ignited a selloff in global markets.
Since then, at least seven top investment banks have raised their recession risk forecasts, with J.P.Morgan putting the odds of a U.S. and global recession at 60%, on fears that the tariffs will not only ignite U.S. inflation but also spark retaliatory measures from other countries, as China has already announced.
China said on Friday it would impose reciprocal 34% tariffs on all U.S. imports from April 10. On Monday, Trump threatened to impose a further 50% tariff on China if Beijing did not reverse its decision.
In Europe, London’s main index, the FTSE100, shed 6% before recovering slightly, while Germany’s Dax, France’s CAC 40 and Italy’s FTSE MIB also all lost around 6% of their value.
Over in Russia, stocks slipped for the fourth consecutive day with the Moscow Exchange (MOEX) Russia Index down 3.91% by early afternoon. It closed 8.5% down on Friday having lost $23.7 billion in two days due to the falling oil price.
Many traders had hopes that Trump would walk back on his tariff policy, but he appeared recalcitrant on Sunday despite almost $6 trillion having been wiped off U.S. stock values, telling reporters aboard Air Force One: “Sometimes you have to take medicine to fix something.”
Recession odds rise
Investors now think that a recession is more likely. Goldman Sachs raised the odds of a U.S. recession from 35% to 45%, the second time it has increased its forecast in a week, amid a growing chorus of such predictions by investment banks, Reuters reported.
Goldman had raised its estimate from 20% to 35% early last week on fears that U.S. President Donald Trump's planned tariffs would roil the global economy. Days later, Trump announced steeper-than-expected duties, which have ignited a selloff in global markets.
Since then, at least seven top investment banks have raised their recession risk forecasts, with J.P.Morgan putting the odds of a U.S. and global recession at 60%, on fears that the tariffs will not only ignite U.S. inflation but also spark retaliatory measures from other countries, as China has already announced.
China said on Friday it would impose reciprocal 34% tariffs on all U.S. imports from April 10. On Monday, Trump threatened to impose a further 50% tariff on China if Beijing did not reverse its decision.
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