Stock market faces historic plunge due to trade war, major indexes down, wiping out trillions.
From Yahoo Finance: 2025-04-05 00:03:00
The stock market faced a historic two-day plunge due to Trump’s trade war, with the Dow down over 2,200 points, Nasdaq 100 in a bear market, and S&P 500 losing nearly 6%, wiping out $5 trillion in market cap.
No sector of the S&P 500 was spared in the worst week since the early days of COVID-19. While “don’t panic” is wise advice, it’s normal to feel the urge to take drastic measures when facing a sea of red in your investment portfolio.
Market pros suggest waiting for a market rebound before selling, and familiarizing yourself with cyclical and defensive stocks can help weather the storm. Consumer staples outperformed during the recent market carnage, while gold and Treasurys have been safe havens.
Day trading and exotic options strategies are risky, with most day traders losing money. Buy and hold is still the best strategy for protection. Keeping cash on hand, equivalent to at least six months of expenses, can shield against market downturns and emergencies.