Investing.com - Market sentiment remained fragile on Tuesday, as the latest Twitter tantrum from U.S. President Donald Trump caused another bout of increased volatility across global financial markets.
It all started when Trump tweeted on May 5 that he would raise tariffs on $200 billion worth of Chinese goods to 25% from 10%, shocking financial markets and fueling worries that trade talks between the world’s two largest economies may be derailed.
Indeed, the S&P 500 has dropped around 4% in the two weeks since, as global investors who were caught off guard dumped risky assets in response.
President Trump then turned his focus to Iran, when he ratcheted up his rhetoric toward the Islamic Republic in a tweet on May 19, warning that a fight with the U.S. would "be the official end of Iran."
The tweet comes amid rising fears over a potential military confrontation between the two countries.
Besides the U.S.-China trade dispute and Iran, Trump has been busy on Twitter this week, launching attacks on “fake news” and the Democrats.
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-- Reuters contributed to this report