{"id":49153,"date":"2025-04-04T18:01:50","date_gmt":"2025-04-04T18:01:50","guid":{"rendered":"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-plunges-on-liberation-day-tariffs-stock-market-recap-for-april-4-2025\/49153\/"},"modified":"2025-04-04T18:01:50","modified_gmt":"2025-04-04T18:01:50","slug":"market-plunges-on-liberation-day-tariffs-stock-market-recap-for-april-4-2025","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-plunges-on-liberation-day-tariffs-stock-market-recap-for-april-4-2025\/49153\/","title":{"rendered":"Market Plunges on &#8220;Liberation Day&#8221; Tariffs: Stock Market Recap for April 4, 2025"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-plunges-on-liberation-day-tariffs-stock-market-recap-for-april-4-2025\/49153\/#Major_Indexes_Suffer_Worst_Single-Day_Losses_Since_2020\" >Major Indexes Suffer Worst Single-Day Losses Since 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-plunges-on-liberation-day-tariffs-stock-market-recap-for-april-4-2025\/49153\/#Trumps_%E2%80%9CLiberation_Day%E2%80%9D_Tariffs_Rattle_Markets\" >Trump&#8217;s &#8220;Liberation Day&#8221; Tariffs Rattle Markets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-plunges-on-liberation-day-tariffs-stock-market-recap-for-april-4-2025\/49153\/#Magnificent_Seven_Stocks_Lead_the_Decline\" >Magnificent Seven Stocks Lead the Decline<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-plunges-on-liberation-day-tariffs-stock-market-recap-for-april-4-2025\/49153\/#Sector_Performance_and_Notable_Movers\" >Sector Performance and Notable Movers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-plunges-on-liberation-day-tariffs-stock-market-recap-for-april-4-2025\/49153\/#Economic_Data_and_Upcoming_Events\" >Economic Data and Upcoming Events<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-plunges-on-liberation-day-tariffs-stock-market-recap-for-april-4-2025\/49153\/#Market_Outlook\" >Market Outlook<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Major_Indexes_Suffer_Worst_Single-Day_Losses_Since_2020\"><\/span>Major Indexes Suffer Worst Single-Day Losses Since 2020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>U.S. stock markets continued their dramatic sell-off on Friday, April 4, 2025, following President <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a>&#8217;s announcement of &#8220;Liberation Day&#8221; tariffs. The market recorded one of its worst performances in years as investors grappled with concerns about potential economic impacts and inflation risks.<\/p>\n<p>The <a href=\"https:\/\/stockmarketwatch.com\/markets\/dowjones\/today.aspx\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=DJI\">DJI<\/a>) fell further today, trading around 39,642.00, down 1,134.00 points (-2.78%) in <a href=\"https:\/\/stockmarketwatch.com\/markets\/pre-market\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Premarket Movers\">pre-market trading<\/a>, following Thursday&#8217;s collapse of 4% or 1,679.39 points.<cscitation citation_id=\"task_1__2\"><\/cscitation> The <a href=\"https:\/\/stockmarketwatch.com\/markets\/sp500\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&#038;P 500<\/a> was down 2.81% in futures trading, while the Nasdaq Composite futures dropped 2.96%.<cscitation citation_id=\"task_1__3\"><\/cscitation><\/p>\n<p>The tech-heavy Nasdaq Composite has been particularly hard hit, entering correction territory after Thursday&#8217;s 6% plunge, its worst single-day performance since March 2020.<cscitation citation_id=\"task_1__2\"><\/cscitation> The S&#038;P 500 similarly suffered, falling 4.8% on Thursday to finish at 5,396.52, marking its worst single-day performance since June 2020.<cscitation citation_id=\"task_1__2\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Trumps_%E2%80%9CLiberation_Day%E2%80%9D_Tariffs_Rattle_Markets\"><\/span>Trump&#8217;s &#8220;Liberation Day&#8221; Tariffs Rattle Markets<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The primary catalyst for the market&#8217;s dramatic decline has been President <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a>&#8217;s announcement of &#8220;Liberation Day&#8221; tariffs. The baseline tariff of 10% will be imposed on all imports starting April 5, with rates potentially rising as high as 54% on certain countries depending on what duties those governments levy on U.S. exports.<cscitation citation_id=\"task_1__2\"><\/cscitation><\/p>\n<p>Financial experts and economists have expressed significant concerns about these tariffs&#8217; potential impact on U.S. economic growth, particularly regarding inflation, which has remained stubbornly high despite the Federal Reserve cutting benchmark interest rates by 1% last year. Market participants increasingly fear a near-term recession or, in the worst case, stagflation in the U.S. economy.<cscitation citation_id=\"task_1__2\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Magnificent_Seven_Stocks_Lead_the_Decline\"><\/span>Magnificent Seven Stocks Lead the Decline<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The &#8220;Magnificent Seven&#8221; tech stocks, which have been market leaders for the past year, have been particularly hard hit in the recent sell-off. Through the first three months of 2025, these mega-cap stocks have posted negative performance, with their declines accelerating following the tariff announcement.<cscitation citation_id=\"task_3__2\"><\/cscitation><\/p>\n<p>NVIDIA Corporation (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=NVDA\">NVDA<\/a>) dropped 7.81% on Thursday and continued its decline below both its 50-day and 200-day moving averages.<cscitation citation_id=\"task_1__3\"><\/cscitation> Apple (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=AAPL\">AAPL<\/a>) and Microsoft (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=MSFT\">MSFT<\/a>) are both trading below their 200-day lines, with Microsoft down 19.7% from its all-time high.<cscitation citation_id=\"task_3__3\"><\/cscitation><\/p>\n<p>Tesla (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=TSLA\">TSLA<\/a>) showed some resilience on Thursday, rising 6% but remains approximately 50% off its December 2023 all-time high of $488.53.<cscitation citation_id=\"task_3__2\"><\/cscitation> Amazon (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=AMZN\">AMZN<\/a>) has fallen 25.8% from its peak, bringing its price-to-earnings ratio to around 32, its cheapest valuation since 2009.<cscitation citation_id=\"task_3__3\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Sector_Performance_and_Notable_Movers\"><\/span>Sector Performance and Notable Movers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The market decline has been broad-based, with 10 out of 11 sectors in the S&#038;P 500 ending Thursday in negative territory. Consumer Discretionary, Technology, and Energy sectors were the hardest hit, tumbling 6%, 6.8%, and 7.9%, respectively.<cscitation citation_id=\"task_1__2\"><\/cscitation><\/p>\n<p>Among the day&#8217;s biggest losers were RH (formerly Restoration Hardware), which plummeted 40.09%, V.F. Corporation (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=VFC\">VFC<\/a>), down 28.74%, and Five Below (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=FIVE\">FIVE<\/a>), which fell 27.81%.<cscitation citation_id=\"task_1__3\"><\/cscitation><\/p>\n<p>A few stocks bucked the trend, with The Goodyear Tire &#038; Rubber Company (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=GT\">GT<\/a>) gaining 11.73%, Lamb Weston Holdings (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=LW\">LW<\/a>) up 10.01%, and McDonald&#8217;s Corporation (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=MCD\">MCD<\/a>) rising 2.15%.<cscitation citation_id=\"task_1__3\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Economic_Data_and_Upcoming_Events\"><\/span>Economic Data and Upcoming Events<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Recent economic data has been mixed. Initial unemployment claims remained unchanged at 219,000 for the week ended March 29, while continuing claims rose 56,000 to 1.903 million.<cscitation citation_id=\"task_1__2\"><\/cscitation> The U.S. trade deficit for goods and services in February came in at $122.7 billion, lower than the consensus estimate of $123.4 billion.<cscitation citation_id=\"task_1__2\"><\/cscitation><\/p>\n<p>The Institute of Supply Management reported that the services PMI for March came in at 50.8%, missing the consensus estimate of 52.9% and February&#8217;s reading of 53.5%.<cscitation citation_id=\"task_1__2\"><\/cscitation><\/p>\n<p>Looking ahead, investors will be watching several upcoming earnings reports. The Cigna Group (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=CI\">CI<\/a>) will release its first quarter 2025 financial results on Friday, May 2, 2025, with a conference call scheduled for 8:30 a.m. ET that day.<cscitation citation_id=\"task_2__3\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Market_Outlook\"><\/span>Market Outlook<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The fear-gauge CBOE Volatility Index (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=VIX\">VIX<\/a>) surged 39.6% to 30.02 on Thursday, marking its highest closing level since August 5, 2024.<cscitation citation_id=\"task_1__2\"><\/cscitation> This elevated level indicates significant market uncertainty and investor anxiety.<\/p>\n<p>As markets continue to process the implications of the new tariff policies, analysts are closely monitoring economic indicators for signs of inflation acceleration or economic slowdown. The combination of trade tensions, persistent inflation concerns, and the potential for central bank policy adjustments will likely continue to drive market volatility in the near term.<\/p>\n<p>Investors are advised to maintain diversified portfolios and consider defensive positioning until market conditions stabilize. The current sell-off may present buying opportunities in high-quality stocks trading at discounted valuations, particularly among the Magnificent Seven companies that maintain strong fundamentals despite recent price declines.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Major Indexes Suffer Worst Single-Day Losses Since 2020 U.S. stock markets continued their dramatic sell-off on Friday, April 4, 2025, 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