From Nasdaq: 2025-04-03 18:54:00

Stock indexes plummeted on Thursday, with the S&P 500, Nasdaq 100, and Dow Jones hitting 6-1/2 month lows due to fears of recession from Trump’s trade policies. The US will impose tariffs on nearly all countries with higher rates on 60 nations, exempting specific industries and countries like Canada and Mexico. China faces a 67% tariff, the EU 39%, and Japan 46%.

The US Mar ISM services index dropped to a 9-month low, Fed comments were slightly hawkish, and tariffs on tech companies could lead to retaliatory measures from Europe. Chip makers saw steep declines, as did consumer stocks and energy companies. Defensive sectors like healthcare and food rose amidst the market turmoil. Lyft shares fell due to a downgrade, while Lamb Weston Holdings gained after strong earnings.

Interest rates rose on T-notes due to fears of recession, while global bond yields fell sharply. European markets also declined, with the Euro Stoxx 50 hitting a 2-1/2 month low. Overseas stock markets saw similar drops, with China’s Shanghai Composite down -0.24% and Japan’s Nikkei down -2.77%.

Earnings reports from Aldeyra Therapeutics Inc, Gencor Industries Inc, and Radius Recycling Inc are expected on 4/4/2025. The markets are closely watching reaction to Trump’s tariff plans and the upcoming US nonfarm payroll data, unemployment rate, and average hourly earnings. Fed Chair Powell is set to discuss the economic outlook at a conference.

Weekly labor market news showed mixed results, with initial unemployment claims falling unexpectedly but continuing claims reaching a 3-1/3 year high. The US trade deficit for Feb narrowed to -$122.7 billion. The Eurozone Mar S&P composite PMI hit a 7-month high, and the Eurozone Feb PPI rose +3.0% y/y. The ECB is considering a rate cut or pause at their April meeting.

Stocks like Apple, Amazon, and Meta Platforms saw significant declines due to tariff risks, while chip makers like Microchip Technology and Micron Technology also plunged. Consumer stocks, retailers, and apparel makers sourcing goods from Asia were hit hard. Travel and leisure stocks dropped, as did energy companies due to falling crude oil prices. RH and Lyft saw sharp declines, while defensive sectors like healthcare and food rose amidst the market turmoil.

Market attention remains on tariff impacts and upcoming economic data, with a focus on tech companies, chip makers, consumer stocks, and energy providers. Defensive sectors like healthcare and food are seeing gains, while earnings reports from Aldeyra Therapeutics Inc, Gencor Industries Inc, and Radius Recycling Inc are expected on 4/4/2025.



Read more at Nasdaq: US Trade Policies Ignite a Stock Market Meltdown