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US stocks cratered on Friday, on track to build on a $2.5 trillion wipeout as China stoked trade-war fears and investors digested fresh jobs data ahead of a Jerome Powell speech.
The Dow Jones Industrial Average (^DJI) pulled back around 2.5%, or about 1,000 points. The blue-chip index was on pace to close in correction territory. Meanwhile the S&P 500 (^GSPC) sank about 2.8%, as the broad-based benchmark was headed for its worst week since March 2020. The tech-heavy Nasdaq Composite (^IXIC) also dropped 2.8%.
Stock losses accelerated before the bell after China said on Friday it will impose additional tariffs of 34% on all US products from April 10 — matching the extra 34% duties imposed by Trump on Wednesday.
That ramped up investor worries that countries are more likely to retaliate than negotiate, leading to a protracted global trade war.
Investors flocked to government bonds as the 10-year treasury (^TNX) yield fell to hover below 4%.
Nasdaq GIDS – Free Realtime Quote USD
As of 10:22:46 AM EDT. Market Open.
^IXIC ^DJI ^GSPC
Economists are warning that with tariffs as-is, the risk of a US recession is rising. The monthly jobs report released on Friday showed a labor market that held steady ahead of Trump’s biggest tariffs. The US added 228,000 jobs in March, beating estimates, though the unemployment rate ticked up to 4.2%.
Federal Reserve Chair Powell is set to speak at a conference on Friday morning, with investors listening out for what he signals about the economy and tariffs. Traders have ramped up bets on interest rate cuts this year to four, as the Fed is expected to set its efforts to cool inflation aside to tackle the bigger risk of economic slowdown.
On Thursday, investors fled risk assets in the wake of the punishing reciprocal tariffs laid out by Trump, with markets worldwide going into a tailspin as US stocks booked their worst one-day sell-off since 2020.
Trump, speaking to reporters aboard Air Force One on Thursday, said the rollout of his tariffs is “going very well.” He added that he is open to “phenomenal” offers from countries to negotiate down the new rates.
Read more: The latest on Trump’s tariffs
LIVE 12 updates
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Trump tells investors ‘my policies will never change’ as markets plummet after his shock tariff announcements
Yahoo Finance’s Alexandra Canal reports:
Read more here.
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Nvidia sinks 4%, Tesla plummets 5% as tech tanks amid sell-off
Nvidia (NVDA) and Tesla (TSLA) led the Nasdaq Composite (^IXIC) lower on Friday as megacaps sold off for a second day in a war amid a global trade war.
Shares of AI chipmaker Nvidia declined about 4% while EV maker Tesla fell more than 5%.
The declines come after stocks suffered their worst daily performance since 2020. On Friday, the S&P 500 was headed toward its worst week since March 2020.
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Stocks tank for second day in a row as trade war escalates, recession fears rise
US stocks opened sharply lower for a second day in a row after China retaliated against US tariffs in an escalating trade war, as Wall Street analysts warned about the rising risk of a recession.
The Dow Jones Industrial Average (^DJI) sank around 2.2%, or about 1,000 points, while the S&P 500 (^GSPC) plummeted about 2.3%. The tech-heavy Nasdaq Composite (^IXIC) dropped more than 2.8% after the three major averages suffered their worst day since 2020 on Thursday.
China said it will impose additional tariffs against US-made imports in reaction to President Trump’s escalated duties revealed on Wednesday.
Trump’s reciprocal tariffs announcement sparked fears of a trade war and the risk of a recession.
“The tariffs, if they stay in place, would be a big hit to the US and global growth, likely pushing the US and global economy into recession this year,” JPMorgan’s Natasha Kaneva said in a Friday note.
Oil futures tanked more than 7% in early trading as concerns about cratering demand rose.
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US economy adds 228,000 jobs in March, unemployment rate ticks up
Yahoo Finance’s Josh Schafer reports:
Read more here.
Futures on the major averages were off premarket lows but still sharply lower after China announced retaliatory tariffs of 34% on US imports in reaction to President Trump’s sweeping levies on its trading partners around the world.
Dow futures were down more than 1000 points, after dropping 1,400 points earlier in premarket trading. Futures on the S&P 500 trimmed losses to drop 2.6%.
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European stocks extend losses as global tariff sell-off continues
European stocks continued slumping Friday as a widespread global sell-off over growing recession fears and escalating trade wars kicked up a notch.
The pan-European Stoxx 600 (^STOXX) and Germany’s DAX (^GDAXI) both fell 4.7%. Meanwhile, the CAC (^FCHI) in Paris dropped 4.2%. In London, the benchmark index (^FTSE) was down 3.8%.
European Commission President Ursula von der Leyen said the European Union was preparing a package of countermeasures against the US if trade talks fail. On Thursday, French President Emmanuel Macron also indicated the Europe would hit back, calling for European companies to suspend planned investment in the United States. And the UK indicated it planned to take a tougher stance on trade as well.
European stocks are headed for their biggest weekly loss in three years. However, US stocks fared worse on Thursday as investors grappled with President Trump’s sweeping reciprocal tariff plan (see chart below).
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Oil tanks 8%, extends losses after China announces retaliatory tariffs on US
Oil sank to multiyear low levels on Friday after China announced retaliatory tariffs against the US in response to President Trump’s recent sweeping levies.
West Texas Intermediate (CL=F), the US benchmark sank as much as 8% to hover near $61 per barrel, while Brent (BZ=F) declined more than 7% to below $65 per barrel. The last time Brent and WTI traded around these levels was in 2021.
Oil extended losses from the prior session when it settled more than 6% lower amid fears of deteriorating demand after Trump’s retaliatory tariffs against US partners were announced on Wednesday. Subsequently, the decision by OPEC+ to increase production output next month more than expected also sent futures lower.
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Stock losses accelerate
Wall Street appears headed for another ugly day as China offered a first retaliatory volley in response to President Trump’s tariffs.
Dow futures are down over 1,400 points, and Nasdaq and S&P 500 futures are both off over 3.5%.
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10-year Treasury yield falls below 4% after China hits back
The yield on the 10-year Treasury (^TNX) fell below 4% on Friday morning as investors flocked to bonds amid trade-war and recession fears.
The benchmark yield fell as much as 15 basis points to 3.88%, the lowest level since President Trump took office. The move came after China announced retaliatory tariffs on US imports in reaction to Trump’s sweeping reciprocal tariffs earlier this week.
Fears of a global slowdown or recession gripped investors after Trump set steeper-than-expected tariffs on US trading partners, sending the stock market into a tailspin.
Trump’s announcement on Wednesday brought levies against Chinese made imports to 54%. Analysts believe those levies will impact a variety of goods, including clothing, toys, and electronics.
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Good morning. Here’s what’s happening today.
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GameStop wobbles after Cohen’s share buy
GameStop (GME) initially jumped over 3% in premarket Friday after CEO Ryan Cohen bought 500,000 more shares, but has since slipped almost % as trading unfolds.
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Japan bank shares plunge in response to tariff destabilization
Reuters reports:
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Oil plunges as Trump tariffs lead to worst week in months
Oil prices declined in early Friday trading in Asia, on track for their worst week in months, as President Trump’s new tariffs fueled fears of a global trade conflict that could dampen oil demand.
Reuters reports:
