After a severe decline for two days … the stability of American stocks

American stocks stabilized in trading this morning, after they declined severely during the past two days, in light of fears of the repercussions of US President Donald’s decision to impose new customs duties on imports from Canada, Mexico and China.
The broader S&P 500 index has not registered almost any change in morning trading after it declined by 6% since it reached its highest level ever last month to return to its levels before the US presidential elections that took place last November.
The Dow Jones Industrial Index increased by 111 points, or 0.30% by ten and a half in the morning, East Coast time of the United States.

The Nasdaq Synod index fell by 0.1%. The stocks may witness a strong move after that, as the Wall Street Stock Exchange is awaiting whether Trump will announce the amendment of the fees that began to be imposed on Canada, Mexico and China yesterday.

A possible trade war

These drawings led to the three countries, the largest commercial partners in the United States, took revenge measures against American products, which enhances fears of the outbreak of a trade war that harms the economies of the three countries.
Economists say that such customs definitions may not only lead to the increase in prices for American families, but also may also hinder global trade and slow the growth of the economy.

Increasing fears of the inflationary recession led to a sharp decrease in American stocks recently, which dispelled the gains achieved by the shares after the elections in the hope that Trump will reduce the restrictions imposed on companies, reduce taxes and take other steps that enhance the profits of companies and the economy in general.
For his part, Trump said in a speech to Congress on Tuesday night that he is moving forward with customs tariffs, with more definitions that are scheduled to enter into force on April 2, even if it caused a “disturbance”.
Trump intends to start applying the principle of “reciprocity” in terms of customs tariffs with the countries of the world, which means that the United States will impose fees on the imports of any country that imposes fees on its imports.
“The definitions aim to make America a rich country and a great country again, this happens and will happen very quickly. There will be little turmoil, but we agree to that,” Trump said.