Thursday Afternoon Coffee - Markets Update - 3 Apr 2025 - Wall Street Sinks as Trump’s Sweeping Tariffs Fuel Recession Fears

Markets Update: Wall Street tumbled Thursday as President Donald Trump’s sweeping tariff escalation triggered fears of a global recession, sending investors fleeing from risk and hammering tech, retail, and banking stocks.

Global Markets Roundup: 3 Apr 2025

The president announced a 10% blanket tariff on most imports and steeper levies on dozens of trade partners, fueling concerns over a prolonged trade war and sparking sharp selloffs across equity markets. The S&P 500 plunged 4%, the Nasdaq tumbled 5.1%, and the Dow slid 3.4%, marking one of the steepest daily losses this year. Wall Street's fear gauge, the VIX, spiked to a three-week high at 26.91.

Market Breadth and Momentum

Declining stocks overwhelmed advancers:

NYSE: 5.16-to-1
Nasdaq: 6.04-to-1
S&P 500: 33 new highs, 80 new lows
Nasdaq: 21 new highs, 545 new lows

Tech, Retail and Banks Hit Hard

High-growth tech stocks led the slide.

Apple (AAPL) plunged 8.4%, battered by tariffs on Chinese imports central to its supply chain.
Nvidia (NVDA) dropped 6.2%, and Amazon (AMZN) lost 7.4%.

Retailers with exposure to Asia also cratered.

Nike (NKE) slid 10.2%,
Ralph Lauren (RL) plunged 16% after new duties targeted Vietnam, Indonesia, and China, all major apparel manufacturing hubs.

Big banks, sensitive to macroeconomic risks, also took a hit.

Citigroup (C) and Bank of America (BAC) both dropped around 10%,
JPMorgan Chase (JPM) fell 6.3%.

Market Correction Deepens

The S&P 500 and Nasdaq are now each down 10% from their recent record highs, entering correction territory. Trump’s tariff plan, set to take effect April 9, includes 25% auto tariffs and broad reciprocal levies. The Federal Reserve is under growing pressure to ease policy. Traders are now pricing in four rate cuts this year, beginning in June. Markets will closely watch Friday’s payrolls report and remarks from Fed Chair Jerome Powell for clarity on the central bank's response.

Global Markets, Currencies React

European markets fell sharply:

STOXX 600: -1.4%
Frankfurt, London, and Paris indexes: down between 1.7% and 2%.

China, the EU, and other major economies threatened retaliation. South Korea, Mexico, India, and others signaled they would seek exemptions before the tariffs take effect.

Currency markets reflected the rush to safety:

Euro (EURUSD) jumped 2.4% to $1.1109, its biggest intraday gain since 2015.
Yen (USDJPY) rose 2.6%;
Swiss franc (USDCHF) gained 3% — both hitting six-month highs.

The Mexican peso and Canadian dollar strengthened, with the dollar down over 1% against both. China’s onshore yuan fell to its weakest since mid-February.

Commodities: Gold Up, Oil & Softs Down

Gold surged to a record $3,167.57 before retreating to $3,108.55, still down 0.8%. Futures slipped 1.1% to $3,132.40.

Oil was hit hard:

Brent crude and WTI each fell 7%, as traders reacted to Trump’s tariffs and OPEC+’s accelerated output plans.
Exxon (XOM) and Chevron (CVX) both dropped about 5%.

Agricultural commodities were mixed:

Soybeans (ZS1!): -18½ cents to $10.11/bushel
Wheat (ZW1!): -1¼ cents to $5.38
Corn (ZC1!): +½ cent to $4.58¼

Cotton futures hit their daily 3-cent limit, while sugar and coffee fell amid risk-off sentiment. Cocoa climbed, with ICE NY cocoa (CCK25) up 3.24%, as traders braced for potential disruptions in supply chains from key producers like Brazil, Indonesia, and Vietnam, which face steep new tariffs.

Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team