Stock indexes decline due to trade war fears, tech stocks fall, chip stocks recover

From Nasdaq: 2025-04-07 13:30:00

Stock indexes are plunging for the third consecutive session, with the S&P 500, Dow Jones Industrials, and Nasdaq 100 hitting multi-month lows. Concerns over a potential trade war and recession are driving the global selloff, despite President Trump’s dismissal of market worries. Treasury Secretary Bessent remains optimistic about economic growth.

Markets saw a brief rebound as chip stocks recovered slightly, fueled by hopes of a Fed rate cut due to tariff tensions. The chances of a rate cut after the May FOMC meeting have risen. President Trump’s recent tariff announcements have led to escalating trade tensions, with China retaliating and global markets experiencing a risk-off sentiment.

US tariffs have been a key driver of market volatility, with President Trump imposing tariffs on various countries and industries. This week, focus will be on trade policy developments and economic data releases. Overseas markets are significantly lower, with European bond yields rebounding. Swaps are indicating a high probability of an ECB rate cut in April.

Stock movements today show a mix of declines and rebounds, with tech giants like Tesla and Apple falling, while chipmakers like Applied Materials and Analog Devices see gains. Banking and energy stocks are under pressure, with US-listed Chinese stocks also declining. Airline stocks are down on UBS downgrades, while Dollar Tree sees a notable increase. Earnings reports are expected from companies like AMMO Inc, Dave & Buster’s Entertainment, and Greenbrier Cos Inc.



Read more at Nasdaq: Stocks Pressured by Global Trade War Fears