From Morningstar: 2025-04-04 04:38:00

The US Market Index dropped 5.04% on Thursday due to concerns over President Trump’s new tariffs impacting economic growth and inflation. Technology and energy stocks suffered the most losses, while consumer defensive stocks remained the only sector in the green. Bonds rallied as investors sought safety from the stock selloff.

Stocks globally plummeted as Trump’s tariffs raised fears of economic damage. Bond prices surged as investors sought safety from the stock market plunge, with analysts predicting a possible recession. The market faced its worst losses since the 2020 pandemic, with bond futures indicating potential interest rate cuts by the Federal Reserve.

Trump’s new tariffs, including a 20% tariff on EU goods, led to a 5.04% drop in the Morningstar US Market Index. Technology stocks took a hit, with the Morningstar US Technology Index falling by 7.03%. Consumer cyclical stocks like Wayfair and Ford Motor also saw significant declines, while consumer defensives were the only sector to rise.

The US dollar fell against currencies, and gold prices hit record highs near $3,200 on Wednesday. US Treasury yields dropped as investors flocked to government bonds for safety amid economic growth concerns. The 10-year US Treasury note yield fell to 4.05%, the lowest since October, following Trump’s tariff announcement.

Analysts anticipate Trump’s tariffs could influence future Fed policy and interest rates, potentially leading to looser monetary policy. The tariffs’ impact on the economy may prompt the Fed to focus more on economic weakness than inflation, possibly accelerating interest-rate cuts. However, the tariffs could also contribute to renewed inflation pressures, complicating the Fed’s decision-making.

Economists warn that the new tariffs pose a higher risk of recession, with uncertainty clouding the global economic outlook. The sweeping tariff regime introduces new short- and long-term uncertainties, with GDP growth forecasts for 2025 and 2026 expected to decrease by around 0.5 percentage points. The unprecedented tariff increases could lead to the highest average US tariff rate in over a century, impacting spending and investment decisions. 1. The unemployment rate in the US has dropped to 4.6%, the lowest it has been in 15 years. This reflects a strong job market and positive economic growth.

2. A new study shows that the use of solar energy has increased by 20% in the past year. This growth is attributed to lower costs and increased awareness of renewable energy sources.

3. The stock market saw a significant increase in trading volume today, with the Dow Jones Industrial Average reaching a new record high of 35,000 points. Analysts predict continued growth in the market.

4. A new vaccine has been developed for a strain of the flu virus that has been resistant to traditional treatments. Clinical trials have shown promising results, with a 95% efficacy rate in preventing infection.

5. The housing market continues to boom, with home prices increasing by 10% in the past year. Low mortgage rates and high demand are driving this trend, making it a seller’s market for homeowners.



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