Stock market plunges as China retaliates with tariffs; overall news is negative.

From Nasdaq: 2025-04-04 11:55:00

Stock indexes plunged to 7-3/4-month lows with the S&P 500, Nasdaq 100, and Dow Jones sliding. China retaliated against US tariffs, hitting a 34% tariff on US imports starting April 10. However, US stock futures recovered slightly after March payrolls beat expectations. Trump imposed reciprocal tariffs on almost all countries. China and the EU face higher rates.

US nonfarm payrolls rose by 228,000 in March, beating expectations, but the unemployment rate unexpectedly rose to 4.2%. Average hourly earnings increased by 3.8% year-over-year, below the expected 4%. President Trump’s tariff announcements worsened market sentiment, driving a flight to safety into government bonds. European and UK bond yields dropped to multi-month lows.

Fears of US tariffs impacting economic growth and earnings have weighed on stock markets. Trump imposed tariffs on Canadian, Mexican, and Chinese goods, escalating tension. Tariffs on US auto imports were implemented, prompting a risk-off mood. Fed Chair Powell’s upcoming speech will be watched closely. Overseas stock markets are also down significantly.

Interest rates are up as investors seek safety in government bonds amid global trade war fears. T-notes reached a 6-month high with a yield drop. European bond yields also fell sharply. US tech stocks, chip makers, travel, and energy companies are among the hardest hit. Chinese stocks like Alibaba and JD.com are sinking after China’s retaliatory tariffs.



Read more at Nasdaq: Stock Losses Deepen on China Retaliatory Tariffs