Well, at least we don’t have to read any more headlines about
Blake Lively…
The U.S. stock market faced significant upheaval last week, driven by mounting fears of a global trade war sparked by President Donald Trump’s announcement of sweeping tariffs. On Wednesday, April 2, Trump imposed a 10% tariff on all U.S. imports, supplemented by reciprocal tariffs of up to 24% targeting nations like Japan, eliciting a severe market response. This period ranked among the most volatile weeks for U.S. equities in recent memory, with major indexes suffering steep losses and the Nasdaq Composite officially entering bear market territory.
The week started with a mixed showing on Monday, March 31, as stocks rebounded from an initial selloff, closing with slight gains in the S&P 500 and Nasdaq, buoyed by cautious optimism ahead of expected tariff specifics. However, sentiment flipped midweek when Trump’s tariff announcement on April 2 triggered a sharp selloff. On Thursday, April 3, the S&P 500 plummeted nearly 5%, its worst single-day drop since the 2020 COVID-19 crisis, while the Dow Jones Industrial Average shed 1,679 points.
The downturn deepened on Friday, April 4, following China’s retaliatory 34% tariff on U.S. goods, effective April 10, causing the S&P 500 to fall an additional 5.97% and the Dow to decline 5.5%, losing 2,231 points.
| 04/07/2024 | 1/1/2025 | 04/07/2025 | 12 MO ROR | YTD ROR | |
| DOW | 38,597 | 42,392 | 38,315 | -0.73% | -9.94% |
| S&P 500 | 5,147 | 5,903 | 5,074 | -1.42% | -13.73% |
| NASDAQ | 16,049 | 19,404 | 15,588 | -2.87% | -19.28% |
By week’s end, the Dow was down 7.9%, the S&P 500 slid 9.1%, and the Nasdaq dropped 10%, their worst weekly percentage declines since March 2020. The Nasdaq’s 22.7% fall from its December 2024 peak confirmed a bear market, while the S&P 500, 17.4% below its all-time high, neared bear territory. The CBOE Volatility Index (VIX) soared to 45.31, its highest since April 2020, underscoring widespread investor panic.
Sector impacts diverged sharply. Technology and consumer discretionary stocks, vulnerable to trade disruptions, took heavy hits—Apple and Nvidia together lost $470 billion in market value. In contrast, defensive sectors like healthcare and utilities gained, with stocks such as Molina Healthcare and Dollar General rising as investors sought refuge. The S&P 500’s market capitalization shrank by a record-breaking $5 trillion over two days, exceeding the March 2020 pandemic decline. Globally, the MSCI World Index fell 5.37%, its sharpest weekly drop since 2020, while Europe’s STOXX 600 declined 4.8%. In Asia-Pacific, Japan’s Nikkei and South Korea’s Kospi fell 6.2% and 5.8%, respectively, as export-driven economies reeled.
U.S. Treasury
Bond Yields
| US1MO | 4.31% |
| US3MO | 4.27 |
| US6MO | 4.11 |
| US1Y | 3.86 |
| US2Y | 3.64 |
| US3Y | 3.63 |
| US5Y | 3.71 |
| US10Y | 4.00 |
| US30Y | 4.42 |
Oil prices dropped 7% to $65.58 per barrel for Brent crude, reflecting demand fears, while a robust U.S. jobs report of 228,000 jobs added in March failed to ease trade war concerns. Investors flocked to safe-havens, pushing 10-year Treasury yields to 3.9% and gold above $3,160 per ounce.
This week, the market’s trajectory will hinge on Trump’s tariff rollout, with reciprocal tariffs up to 24% on countries like Japan starting Monday, April 7, and China’s 34% counter-tariff looming on April 10. These measures threaten export-reliant sectors like technology and consumer discretionary, with firms like Apple and Nike already battered. Posts on X indicate nations are racing to negotiate before April 9 deadlines, injecting uncertainty likely to keep the VIX elevated. Economic data will also be pivotal: Wednesday’s FOMC minutes will clarify the Federal Reserve’s stance on rate cuts amid trade pressures, following the strong jobs data.
Thursday’s March CPI and jobless claims will test if inflation, at 2.8%, is rising due to tariffs, potentially affecting the 110 basis-point rate cuts expected by year-end. Friday’s PPI and Michigan Consumer Sentiment will further assess inflation and confidence after last week’s safe-haven shift. The Q1 earnings season, kicking off midweek with bank reports, will gauge corporate strength amid trade chaos, potentially amplifying volatility.
In summary, escalating trade tensions, economic indicators, Fed signals, and early earnings will steer the U.S. stock market this week. Defensive sectors may see sustained interest, but broader losses could deepen if tariff fears overshadow economic resilience, with analysts anticipating continued turbulence.
Sources:
- Investopedia. (2025, March 31). “Markets News, March 31, 2025.” (Initial market optimism)
- T. Rowe Price. (2025, April 4). “Global markets weekly update.” (Tariff announcement details)
- Investopedia. (2025, April 3). “Markets News, April 3, 2025.” (Thursday’s S&P 500 and Dow drops)
- Reuters. (2025, April 5). “S&P 500 loses $5 trillion in two days in Trump tariff selloff.” (Friday’s declines, weekly losses)
- CNBC. (2025, April 4). “Stock market today: Live updates.” (Friday’s market reaction, jobs report)
- Investopedia. (2025, April 4). “Markets News, April 4, 2025.” (Weekly index losses)
- Reuters. (2025, April 5). “S&P 500 loses $5 trillion in two days in Trump tariff selloff.” (Nasdaq bear market, VIX surge, global index drops)
- The Guardian. (2025, April 4). “US stock markets see worst day since Covid pandemic after investors shaken by Trump tariffs.” (Tech and consumer stock losses)
- Investopedia. (2025, April 3). “Markets News, April 3, 2025: Trump Tariffs Spark Worst Day for Major Stock Indexes Since 2020.” (Defensive sector gains)
- Charles Schwab. (2025, April 4). “Schwab’s Market Open Update.” (Oil price drop, safe-haven moves)
- T. Rowe Price. (2025, April 4). “Global markets weekly update.” (Treasury yields, goldprices)
- The Guardian. (2025, March 31). “Global stock markets fall as new Trump tariffs loom.” (Asia-Pacific market declines)
- Reuters. (2025, April 5). “S&P 500 loses $5 trillion in two days in Trump tariff selloff.” (Tariff implementation, volatility outlook)
- X posts. (2025, April 6). Various users highlighting tariff developments and earnings season. (Negotiation uncertainty)
- CNBC. (2025, April 4). “Stock market today: Live updates.” (FOMC minutes, jobs report context)
- T. Rowe Price. (2025, April 4). “Global markets weekly update.” (CPI and rate cut expectations)
- U.S. News. (2025, April 2). “Will the Stock Market Crash in 2025?” (Inflation context)
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