{"id":49154,"date":"2025-04-04T18:28:56","date_gmt":"2025-04-04T18:28:56","guid":{"rendered":"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-recap-wall-street-reels-as-trumps-tariffs-trigger-global-sell-off\/49154\/"},"modified":"2025-04-04T18:28:56","modified_gmt":"2025-04-04T18:28:56","slug":"market-recap-wall-street-reels-as-trumps-tariffs-trigger-global-sell-off","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-wall-street-reels-as-trumps-tariffs-trigger-global-sell-off\/49154\/","title":{"rendered":"Market Recap: Wall Street Reels as Trump&#8217;s Tariffs Trigger Global Sell-Off"},"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-recap-wall-street-reels-as-trumps-tariffs-trigger-global-sell-off\/49154\/#Major_Indexes_Plummet_Amid_Tariff_Concerns_and_China_Retaliation\" >Major Indexes Plummet Amid Tariff Concerns and China Retaliation<\/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-recap-wall-street-reels-as-trumps-tariffs-trigger-global-sell-off\/49154\/#Trumps_Tariffs_Spark_Global_Market_Fears\" >Trump&#8217;s Tariffs Spark Global Market Fears<\/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-recap-wall-street-reels-as-trumps-tariffs-trigger-global-sell-off\/49154\/#Sector_Performance_and_Notable_Stock_Movements\" >Sector Performance and Notable Stock Movements<\/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-recap-wall-street-reels-as-trumps-tariffs-trigger-global-sell-off\/49154\/#Weekly_Performance_and_Market_Outlook\" >Weekly Performance and Market Outlook<\/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-recap-wall-street-reels-as-trumps-tariffs-trigger-global-sell-off\/49154\/#Upcoming_Economic_Events_and_Earnings_Releases\" >Upcoming Economic Events and Earnings Releases<\/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-recap-wall-street-reels-as-trumps-tariffs-trigger-global-sell-off\/49154\/#Market_Sentiment_and_Bond_Yields\" >Market Sentiment and Bond Yields<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-wall-street-reels-as-trumps-tariffs-trigger-global-sell-off\/49154\/#Conclusion_Navigating_Uncertain_Waters\" >Conclusion: Navigating Uncertain Waters<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Major_Indexes_Plummet_Amid_Tariff_Concerns_and_China_Retaliation\"><\/span>Major Indexes Plummet Amid Tariff Concerns and China Retaliation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>U.S. stock markets experienced a dramatic sell-off on Friday, April 4, 2025, continuing the previous day&#8217;s rout as investors grappled with escalating trade tensions following President Donald <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a>&#8217;s &#8220;Liberation Day&#8221; tariff announcements. The market turmoil intensified after China announced retaliatory measures, raising fears of a potential global recession.<\/p>\n<p>The major indexes posted significant losses for the second consecutive day. 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 approximately 1,100 points at the open, following Thursday&#8217;s collapse of 1,679.39 points (4%) that brought the blue-chip index to 40,545.93.<cscitation citation_id=\"task_1__1\"><\/cscitation> The <a href=\"https:\/\/stockmarketwatch.com\/markets\/sp500\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&#038;P 500<\/a> dropped 2.6% in early trading after shedding 4.8% or 274.45 points on Thursday to finish at 5,396.52.<cscitation citation_id=\"task_1__1\"><\/cscitation> The tech-heavy Nasdaq Composite, which is now in correction territory, was down 3.1% following Thursday&#8217;s 6% plunge that brought it to 16,550.61.<cscitation citation_id=\"task_1__2\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Trumps_Tariffs_Spark_Global_Market_Fears\"><\/span>Trump&#8217;s Tariffs Spark Global Market Fears<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The market turmoil was triggered by 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, which include a baseline 10% tariff on all imports starting April 5, with rates potentially rising as high as 54% depending on what duties foreign governments levy on U.S. exports.<cscitation citation_id=\"task_1__1\"><\/cscitation> China&#8217;s commerce ministry responded on Friday by announcing a 34% levy on all U.S. products, matching the tariff rate on Chinese goods coming into the U.S.<cscitation citation_id=\"task_2__2\"><\/cscitation><\/p>\n<p><b>Economists and financial experts are highly concerned about the effect of these tariffs on U.S. economic growth, particularly on inflation, which remains elevated despite the Fed&#8217;s interest rate cuts last year.<\/b> JPMorgan has raised the odds of a recession this year from 40% to 60%, with chief economist Bruce Kasman noting that &#8220;full implementation of announced policies would likely push the U.S. and possibly global economy into recession this year.&#8221;<cscitation citation_id=\"task_2__2\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Sector_Performance_and_Notable_Stock_Movements\"><\/span>Sector Performance and Notable Stock Movements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The sell-off was broad-based, with technology stocks bearing the brunt of the decline due to their significant exposure to China. Companies with large Chinese exposure led the <a href=\"https:\/\/stockmarketwatch.com\/markets\/pre-market\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Premarket Movers\">pre-market<\/a> declines, with Apple (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=AAPL\">AAPL<\/a>) and Qualcomm (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=QCOM\">QCOM<\/a>) down 5% and 6%, respectively. Tesla (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=TSLA\">TSLA<\/a>) lost 5%, while Caterpillar (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=CAT\">CAT<\/a>) shed 6%. Semiconductor giant Nvidia (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=NVDA\">NVDA<\/a>) fell about 4%.<cscitation citation_id=\"task_2__2\"><\/cscitation><\/p>\n<p>Bank stocks also tumbled amid growing concerns about a U.S. economic slowdown. Morgan Stanley (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=MS\">MS<\/a>) dropped 5%, Goldman Sachs (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=GS\">GS<\/a>) shed 4.5%, while Citigroup (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=C\">C<\/a>) and JPMorgan Chase (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=JPM\">JPM<\/a>) each slid more than 4%.<cscitation citation_id=\"task_2__2\"><\/cscitation><\/p>\n<p>Among the few gainers, The Goodyear Tire &#038; Rubber Company (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=GT\">GT<\/a>) stood out with an 11.73% increase, while Lamb Weston Holdings (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=LW\">LW<\/a>) rose 10.01%.<cscitation citation_id=\"task_1__3\"><\/cscitation> McDonald&#8217;s Corporation (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=MCD\">MCD<\/a>) also bucked the trend, gaining 2.15%.<cscitation citation_id=\"task_1__3\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Weekly_Performance_and_Market_Outlook\"><\/span>Weekly Performance and Market Outlook<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The three major indexes are on track to finish the week squarely in the red. The Nasdaq Composite and S&#038;P 500 have tumbled 4.5% and 3.3%, respectively, week to date, tracking for their worst weekly performances since September 2024 and sixth negative week of the last seven. The Dow has slid 2.5% this week.<cscitation citation_id=\"task_2__2\"><\/cscitation><\/p>\n<p>For the year, the S&#038;P 500 is down 8.2%, the Dow has fallen 4.7%, and the Nasdaq is down 14.3%.<cscitation citation_id=\"task_1__2\"><\/cscitation> The Russell 2000 index of smaller companies, which is particularly vulnerable to economic downturns, has also declined 14.3% year-to-date.<cscitation citation_id=\"task_1__2\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Upcoming_Economic_Events_and_Earnings_Releases\"><\/span>Upcoming Economic Events and Earnings Releases<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Investors will be closely monitoring upcoming economic data and Federal Reserve communications for insights into how the central bank might respond to the current market turmoil and potential economic slowdown.<\/p>\n<p>Key upcoming events include:<\/p>\n<p>&#8211; Chair Jerome Powell&#8217;s speech on &#8220;Economic Outlook&#8221; at the Society for Advancing Business Editing and Writing (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=SABEW\">SABEW<\/a>) Annual Conference on April 4<cscitation citation_id=\"task_3__2\"><\/cscitation><br \/>&#8211; Governor Michael S. Barr&#8217;s speech on &#8220;Artificial Intelligence and Banking&#8221; at the Federal Reserve Bank of San Francisco on April 4<cscitation citation_id=\"task_3__2\"><\/cscitation><br \/>&#8211; The release of the Employment Situation report on April 4<cscitation citation_id=\"task_3__3\"><\/cscitation><br \/>&#8211; Consumer Credit (G.19) data release on April 7<cscitation citation_id=\"task_3__2\"><\/cscitation><br \/>&#8211; Governor Michelle W. Bowman&#8217;s nomination hearing before the U.S. Senate Committee on Banking, Housing, and Urban Affairs on April 10<cscitation citation_id=\"task_3__2\"><\/cscitation><\/p>\n<p>On the corporate front, several companies are scheduled to report earnings in the coming days, with approximately 60 earnings releases expected on Friday, April 4.<cscitation citation_id=\"task_2__3\"><\/cscitation> Investors will be particularly attentive to management guidance regarding the potential impact of the new tariffs on business operations and outlook.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Market_Sentiment_and_Bond_Yields\"><\/span>Market Sentiment and Bond Yields<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Market sentiment has turned decidedly negative, with the fear-gauge CBOE Volatility Index (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=VIX\">VIX<\/a>) surging 39.6% to 30.02 on Thursday, marking its highest closing level since August 5, 2024.<cscitation citation_id=\"task_1__1\"><\/cscitation> This indicates significant investor anxiety about near-term market prospects.<\/p>\n<p>The 10-year Treasury yield fell back below 4% on Friday as investors sought safety in bonds, pushing prices up and rates lower.<cscitation citation_id=\"task_2__2\"><\/cscitation> This flight to safety reflects growing concerns about economic growth and the potential for a recession.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion_Navigating_Uncertain_Waters\"><\/span>Conclusion: Navigating Uncertain Waters<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As markets continue to digest the implications of the new tariff policies and potential retaliatory measures from trading partners, investors should prepare for continued volatility. The combination of trade tensions, inflation concerns, and recession fears creates a challenging environment that will likely require careful portfolio management in the coming weeks.<\/p>\n<p>Market participants will be closely watching for any signs of policy adjustments or diplomatic developments that might ease trade tensions, as well as upcoming economic data that could provide insights into the resilience of the U.S. economy in the face of these new challenges.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Major Indexes Plummet Amid Tariff Concerns and China Retaliation U.S. stock markets experienced a dramatic sell-off on Friday, April 4, 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