The market downturn shows no signs of abating.

“Yesterday marked the markets’ phase of denial. Today, we’re seeing a lack of relief,” stated Bob Savage from the Bank of New York.

He further explained, “There’s considerable potential for global market corrections to persist, given the risk accumulation over the past three years of worldwide economic growth.”

Robin Brooks, a former strategist with Goldman Sachs, highlighted that financial markets serve as the “ultimate constraint” for President Trump.

“It was the turbulent conditions in the Treasury market that led him to relent regarding China back in April 2025,” Brooks noted.

“We’re rapidly heading in that direction once more,” he added.

Many investors have cashed in on the assumption that the president would reverse his unpopular decisions in the face of wide opposition.

“As much as people say he likes to only go in one direction and go maximalist, he often comes to a more negotiated outcome or settlement.”

And when it comes to Iran, Trump does not have the support he would have hoped for.

“He’s also gotten pushback from Republicans on some matters, when he sees his GOP base is not with him,” he said.

“He also has responded in the past to the financial markets not going well.”

But predicting the president’s next move is a “fool’s errand”, Mondschein said.

The ASX 200 is down 1.71 per cent and counting an hour after the markets opened.

Meanwhile, the price of oil continues to skyrocket as Iran threatens oil tankers in the Strait of Hormuz.

The Dow Jones had another bad day, as did the S&P 500 and the Nasdaq Composite.

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