US: Wall Street Slips as Fed Boost Proves Short-Lived

US Stock Indexes Open Lower as Tariff Worries Return

NEW YORK, March 20 (Reuters) – US stock indexes opened lower on Thursday, as worries about the fallout of US tariff policies returned and concerns over the health of the global economy lingered.

Downbeat Start to the Trading Day

The S&P 500 index fell 0.4% in the first 15 minutes of trading, while the Dow Jones Industrial Average dropped 0.3%. The Nasdaq Composite slid 0.5%. The declines followed a mixed performance on Wednesday, when the Dow and S&P 500 rallied, while the Nasdaq fell.

Trade Tensions Weigh on Markets

The renewed concern over trade policies comes as the US and China are set to hold high-level talks in Washington on Thursday to discuss the ongoing trade dispute. The US has imposed tariffs on billions of dollars’ worth of Chinese goods, and Beijing has retaliated with its own tariffs on US products.

Global Economic Worries

Concerns over the health of the global economy also weighed on the market. Data on Wednesday showed the euro zone’s economy expanded at a slower pace in the first quarter, while the International Monetary Fund (IMF) cut its global growth forecast for this year.

Market volatility Continues

The market’s volatility has been on the rise in recent weeks, with the CBOE Volatility Index, also known as the VIX, surging above 14 on Wednesday. The VIX, which measures the expected volatility of the S&P 500, has more than doubled since the start of the year.

Conclusion

The US stock market opened lower on Thursday, as worries about the fallout of US tariff policies and concerns over the health of the global economy lingered. The market’s volatility has been on the rise in recent weeks, and investors will be closely watching the outcome of the US-China trade talks and the global economic data for signs of a recovery.

FAQs

Q: What are the main reasons for the decline in the US stock market?

A: The main reasons are concerns over the fallout of US tariff policies and worries about the health of the global economy.

Q: What are the trade talks between the US and China about?

A: The talks are aimed at resolving the ongoing trade dispute between the two countries, which has seen the US impose tariffs on billions of dollars’ worth of Chinese goods and Beijing retaliate with its own tariffs on US products.

Q: What is the CBOE Volatility Index?

A: The CBOE Volatility Index, also known as the VIX, measures the expected volatility of the S&P 500 and has more than doubled since the start of the year.