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Wall Street Stumbles as Trump’s Tariff Threats Rattle Global Markets

U.S. stock markets kicked off the week in the red as renewed trade tensions sparked by former President Donald Trump sent shockwaves through Wall Street. The Dow Jones Industrial Average tumbled over 400 points, while the S&P 500 and Nasdaq Composite dropped 0.8% and 0.9% respectively. The sell-off followed Trump’s announcement of sweeping new tariffs set to take effect on August 1. In a series of public letters posted to social media, Trump warned that countries including Japan, South Korea, South Africa, and Malaysia would face levies ranging from 25% to 40% unless trade agreements are finalized by a self-imposed July 9 deadline. Adding to the market jitters, Trump declared that any nation aligning with the “Anti-American policies of BRICS” would be hit with an additional 10% tariff, escalating tensions with key trading partners like China and India. The tech sector bore the brunt of the downturn, with Tesla shares plunging nearly 7% amid political controversy surrounding CEO Elo...
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Bank of Canada Cuts Key Interest Rate to 4.5% Amid Economic Concerns

 

The Bank of Canada has reduced its benchmark interest rate by 25 basis points, bringing the overnight rate down to 4.5%. This marks the second consecutive rate cut by the central bank, a move widely anticipated by economists.

The decision comes in response to continued progress in reducing inflation and weakening economic conditions. Canada’s annual inflation rate fell to 2.7% in June, down from a temporary spike in May. The central bank aims to bring inflation closer to its 2% target while addressing the risks of economic slowdown.

Governor Tiff Macklem emphasized that the path to achieving the inflation target will not be straightforward and that future rate cuts will depend on the progression of inflation. The Bank of Canada is carefully monitoring the balance between easing price pressures and persistent inflation in certain sectors, such as housing and services.

The rate cut is expected to provide some relief to borrowers and stimulate economic activity, but it also reflects the central bank’s cautious approach to navigating the current economic landscape.


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