{"id":49184,"date":"2025-04-07T13:02:05","date_gmt":"2025-04-07T18:02:05","guid":{"rendered":"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-recap-stocks-plummet-as-trump-tariffs-trigger-global-selloff-april-7-2025\/49184\/"},"modified":"2025-04-07T13:02:05","modified_gmt":"2025-04-07T18:02:05","slug":"market-recap-stocks-plummet-as-trump-tariffs-trigger-global-selloff-april-7-2025","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-stocks-plummet-as-trump-tariffs-trigger-global-selloff-april-7-2025\/49184\/","title":{"rendered":"Market Recap: Stocks Plummet as Trump Tariffs Trigger Global Selloff &#8211; April 7, 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-recap-stocks-plummet-as-trump-tariffs-trigger-global-selloff-april-7-2025\/49184\/#Major_Indexes_Suffer_Steep_Declines_Amid_Trade_War_Fears\" >Major Indexes Suffer Steep Declines Amid Trade War Fears<\/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-stocks-plummet-as-trump-tariffs-trigger-global-selloff-april-7-2025\/49184\/#%E2%80%9CMagnificent_Seven%E2%80%9D_Tech_Stocks_Continue_to_Suffer\" >&#8220;Magnificent Seven&#8221; Tech Stocks Continue to Suffer<\/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-stocks-plummet-as-trump-tariffs-trigger-global-selloff-april-7-2025\/49184\/#White_House_and_Federal_Reserve_Response\" >White House and Federal Reserve Response<\/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-stocks-plummet-as-trump-tariffs-trigger-global-selloff-april-7-2025\/49184\/#Global_Market_Reaction_and_Retaliation\" >Global Market Reaction and Retaliation<\/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-stocks-plummet-as-trump-tariffs-trigger-global-selloff-april-7-2025\/49184\/#Upcoming_Market_Events_to_Watch\" >Upcoming Market Events to Watch<\/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-stocks-plummet-as-trump-tariffs-trigger-global-selloff-april-7-2025\/49184\/#Recession_Risks_and_Market_Outlook\" >Recession Risks and Market Outlook<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Major_Indexes_Suffer_Steep_Declines_Amid_Trade_War_Fears\"><\/span>Major Indexes Suffer Steep Declines Amid Trade War Fears<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Wall Street experienced a brutal trading session on Monday, April 7, 2025, as markets continued to reel from President <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a>&#8217;s sweeping tariff announcements. The selloff, which began last week, intensified as investors grappled with the potential economic impact of what many analysts are calling the most significant trade policy shift in over a century.<\/p>\n<p>The <b><a href=\"https:\/\/stockmarketwatch.com\/markets\/sp500\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&#038;P 500<\/a> fell 2.21% to 4,961.73<\/b>, extending its losses to more than 17% from its February peak and pushing the benchmark index perilously close to bear market territory.<cscitation citation_id=\"task_1__1\"><\/cscitation> The <b><a href=\"https:\/\/stockmarketwatch.com\/markets\/dowjones\/today.aspx\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average plunged 2.70% to 37,282.14<\/b>, shedding over 1,000 points in a single session.<cscitation citation_id=\"task_1__1\"><\/cscitation> Meanwhile, the <b>Nasdaq Composite dropped 1.95% to 15,283.41<\/b>, having already entered bear market territory last week after falling more than 22% from its record high.<cscitation citation_id=\"task_1__1\"><\/cscitation><\/p>\n<p>The market rout follows President <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a>&#8217;s implementation of a baseline 10% tariff on all global imports, which went into effect over the weekend, with additional &#8220;reciprocal&#8221; tariffs set to take effect on April 9. These measures would bring the average U.S. tariff rate to nearly 30% &#8211; the highest in more than 100 years.<cscitation citation_id=\"task_3__1\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"%E2%80%9CMagnificent_Seven%E2%80%9D_Tech_Stocks_Continue_to_Suffer\"><\/span>&#8220;Magnificent Seven&#8221; Tech Stocks Continue to Suffer<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The once-invincible &#8220;Magnificent Seven&#8221; tech stocks continued their dramatic selloff on Monday, with the group shedding as much as $647 billion in market capitalization during early trading.<cscitation citation_id=\"task_3__1\"><\/cscitation> <\/p>\n<p>Tesla (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=TSLA\">TSLA<\/a>) was among the hardest hit, falling 5.25% as analysts noted the company &#8220;still derives a considerable amount of its parts\/batteries from sources outside the US including China.&#8221;<cscitation citation_id=\"task_3__1\"><\/cscitation> Apple (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=AAPL\">AAPL<\/a>) dropped 5.91%, with Wedbush estimating that approximately 90% of iPhones are manufactured in China, which is set to face 54% tariffs under the new rules.<cscitation citation_id=\"task_3__1\"><\/cscitation><\/p>\n<p>Other tech giants also suffered significant losses, with Microsoft (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=MSFT\">MSFT<\/a>) down 1.78% and Nvidia (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=NVDA\">NVDA<\/a>) slipping 0.34%. Some tech stocks managed to pare losses throughout the day, with Amazon (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=AMZN\">AMZN<\/a>) actually gaining 0.04% after initially dropping more than 4%.<cscitation citation_id=\"task_3__1\"><\/cscitation><\/p>\n<p>Analysts point out that the &#8220;Magnificent Seven&#8221; may be particularly vulnerable to trade tensions, as approximately 50% of their earnings come from abroad, compared to 41% for the broader S&#038;P 500.<cscitation citation_id=\"task_3__1\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"White_House_and_Federal_Reserve_Response\"><\/span>White House and Federal Reserve Response<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite the market turmoil, the White House has shown little indication of backing down from its trade policy. President Trump addressed the market selloff on Sunday, stating: &#8220;I don&#8217;t want anything to go down, but sometimes you have to take medicine to fix something.&#8221;<cscitation citation_id=\"task_1__1\"><\/cscitation> This comment has done little to reassure nervous investors looking for signs that the administration might moderate its stance.<\/p>\n<p>Meanwhile, Federal Reserve Chair Jerome Powell delivered a speech on Friday that offered mixed signals regarding potential monetary policy responses. Powell noted that while the labor market remains in good shape, the Fed&#8217;s policy stance is &#8220;well positioned to wait for greater clarity&#8230; (on the likely effects of trade and fiscal policy, for example) before considering any changes in monetary policy.&#8221;<cscitation citation_id=\"task_2__1\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Global_Market_Reaction_and_Retaliation\"><\/span>Global Market Reaction and Retaliation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The market selloff has extended well beyond U.S. borders. European stocks dropped sharply on Monday, with the Stoxx 600 falling nearly 6% and Germany&#8217;s DAX index initially shedding more than 10% before paring some losses.<cscitation citation_id=\"task_1__1\"><\/cscitation> Asian markets were hit even harder, with Taiwan stocks plummeting almost 10% &#8211; the biggest one-day percentage fall on record.<cscitation citation_id=\"task_2__2\"><\/cscitation><\/p>\n<p>Trading partners have begun announcing retaliatory measures. China has already announced 34% tariffs on all U.S. exports, while EU countries are seeking to present a united front, likely approving targeted countermeasures on up to $28 billion of U.S. imports.<cscitation citation_id=\"task_2__2\"><\/cscitation> These responses have heightened concerns about a spiraling global trade war.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Upcoming_Market_Events_to_Watch\"><\/span>Upcoming Market Events to Watch<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Investors will be closely monitoring several key economic releases and corporate events this week that could further influence market sentiment:<\/p>\n<p>1. **Inflation Data**: The Consumer Price Index (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=CPI\">CPI<\/a>) will be released on Thursday, followed by the Producer Price Index (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=PPI\">PPI<\/a>) on Friday. These reports will be particularly significant given concerns about tariffs potentially fueling inflation.<cscitation citation_id=\"task_2__1\"><\/cscitation><\/p>\n<p>2. **Federal Reserve Minutes**: The minutes from the most recent Federal Open Market Committee (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=FOMC\">FOMC<\/a>) meeting will be released on Wednesday, potentially providing additional insights into the Fed&#8217;s thinking on monetary policy amid trade tensions.<cscitation citation_id=\"task_2__1\"><\/cscitation><\/p>\n<p>3. **Bank Earnings**: The first-quarter earnings season kicks off on Friday with reports from major financial institutions including JPMorgan Chase (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=JPM\">JPM<\/a>), Wells Fargo (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=WFC\">WFC<\/a>), BlackRock (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=BLK\">BLK<\/a>), and Bank of New York Mellon (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=BK\">BK<\/a>).<cscitation citation_id=\"task_2__1\"><\/cscitation> These results could offer important clues about the broader economic impact of recent market volatility.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Recession_Risks_and_Market_Outlook\"><\/span>Recession Risks and Market Outlook<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The market turmoil has significantly increased recession concerns. Goldman Sachs now sees a 45% chance of a U.S. recession this year, while JPMorgan estimates a 60% chance of a wider global downturn.<cscitation citation_id=\"task_2__2\"><\/cscitation><\/p>\n<p>Despite the gloomy short-term outlook, some analysts maintain a cautiously optimistic longer-term view. Oppenheimer has revised its year-end S&#038;P 500 price target to 5,950, which still represents approximately 15% upside from current levels.<cscitation citation_id=\"task_2__3\"><\/cscitation> The firm notes that &#8220;at current levels the equity market appears oversold&#8221; and suggests that should &#8220;cooler heads prevail in negotiations on trade,&#8221; market targets may need to be adjusted higher once again.<cscitation citation_id=\"task_2__3\"><\/cscitation><\/p>\n<p>As markets continue to digest the implications of the new tariff regime, volatility is expected to remain elevated. Investors are advised to prepare for further turbulence as trade negotiations unfold and the first-quarter earnings season provides additional insights into the economic impact of these policy shifts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Major Indexes Suffer Steep Declines Amid Trade War Fears Wall Street experienced a brutal trading session on Monday, April 7, 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