TAIPEI (Taiwan News) — The Financial Supervisory Commission said Friday that Taiwan's National Financial Stabilization Fund may intervene in the stock market next week after US President Donald Trump’s tariffs caused global financial turmoil.

The US stock market dropped sharply on Friday, with the Dow Jones losing 1,679.39 points and the S&P 500 recording its worst drop since June 2020. TSMC’s US-listed shares fell more than 7%, signaling potential local market volatility when Taiwan's stock market reopens on Monday, per CNA.

The Taiwan Stock Exchange Capitalization Weighted Stock Index, or TAIEX, closed at 21,298.2 on Wednesday, just ahead of the key 20,000-point threshold. This marked the last trading day of the week due to the Tomb Sweeping Festival holiday.

The TAIEX has fallen over 1,000 points this year, mainly due to concerns over US tariffs. Although goods in the top 30 US-bound export categories accounted for just 2.74% of the total revenue of Taiwan's listed companies in 2024, the wide scope of Trump’s tariff plan has caused broader market disruptions.

With Taiwan stocks expected to open lower on Monday, the National Financial Stabilization Fund, originally scheduled to meet on April 14, is now under increased scrutiny. Investors are closely watching for signs of potential intervention.

The fund, established in 2000, is designed to intervene during times of significant domestic or international crises that may undermine public confidence or disrupt markets. It helps stabilize Taiwan's capital markets during turbulent periods.