Stock market today: Dow tanks over 1,000 points, S&P 500 eyes bear market as Trump tariff rout continues

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Mon, Apr 7, 2025, 6:30 AM 2 min read

China has already announced retaliatory tariffs, and the EU is readying countermeasures. The US's caller baseline 10% duties connected astir trading partners went into effect implicit the weekend, and further tariffs connected alleged "bad actors" are acceptable to beryllium implemented from Wednesday.

Markets successful Asia and Europe retreated sharply connected Monday arsenic investors became progressively acrophobic that Trump mightiness not negociate connected his sweeping tariff hikes, risking wide economical slowdown. Japan's benchmark Nikkei 225 (^N225) slid into a carnivore market, arsenic did the Hang Seng (^HSI) successful Hong Kong.

Meanwhile, lipid prices traded astir 3% lower, having tumbled astir 4% overnight to beneath $60 per tube for the archetypal clip since 2021.

Administration officials defended Trump's plans during appearances connected Sunday speech shows. Treasury Secretary Scott Bessent rejected the assertion that the tariffs could nonstop the US system into recession.

Read more: Live updates connected Trump tariffs fallout

Bessent, on with apical economical advisor Kevin Hassett, claimed that much than 50 countries person reached retired to statesman negotiations, raising questions astir logistical challenges with the tariffs acceptable to spell successful spot this week. Commerce Secretary Howard Lutnick said the tariffs would "definitely going to enactment successful spot for days and weeks."

LIVE 17 updates

Stocks vessel for 3rd time successful a enactment arsenic tariffs spark planetary sell-off

US stocks slid for a 3rd time successful a enactment Monday amid a planetary banal fallout sparked past week pursuing the Trump administration's sweeping tariff policy.

The S&P 500 (^GSPC) fell implicit 3%, portion the tech-heavy Nasdaq Composite (^IXIC) retreating 4%. The Dow Jones Industrial Average (^DJI) tanked much than 1,200 points.

Stocks are continuing to merchantability disconnected aft their worst week since March 2020 arsenic Trump signaled that helium won't alteration up his commercialized argumentation to relieve markets.

"Sometimes you person to instrumentality medicine to hole something," Trump told a newsman implicit the weekend.

Stocks concisely came disconnected its pre-market lows aft JPMorgan's Jamie Dimon's remarks successful a caller 59-page shareholder missive connected Monday, wherever helium warned of the galore uncertainties from the sweeping commercialized policies connected investments, superior flows, firm confidence, and the US dollar.

Oil continued to descent connected Monday greeting arsenic fears of cratering request steepened losses from past week.

"Magnificent Seven" stocks slid, led by declines successful Tesla (TSLA), Nvidia (NVDA), and Apple (AAPL), arsenic the European Union prepares its ain acceptable of countermeasures pursuing China's retaliatory levies announced past Friday.
Here's what Trump's closest allies are saying astir tariffs

President Trump has doubled down connected his assertive tariff policy, saying precocious Sunday that "sometimes you person to instrumentality medicine to hole something."

His closest allies are supporting that narrative, adjacent arsenic the administration's planetary tariff escalation threatens to nonstop stocks into a carnivore market.

On Monday, White House economical advisor Peter Navarro said that tariffs volition wage for the biggest taxation chopped successful American history.

"Don't get panicked retired by each of this," helium said successful an interrogation with CNBC. "The broadest-based taxation chopped successful American past is coming successful a substance of months. So immoderate discussions of recession look silly erstwhile you origin that in."

Navarro besides noted the caller question successful Treasury yields, with the 10-year (^TNX) falling arsenic overmuch arsenic 20 ground points since Trump's tariff announcement.

"The Fed is not going to bash its job," Navarro said. "But the agelong enslaved is doing it."

Other members of the medication person besides downplayed the interaction connected the US economy.

"Americans who privation to discontinue close present — the Americans who enactment distant for years successful their savings accounts — I deliberation they don’t look astatine the day-to-day fluctuations [in the banal market]," Treasury Secretary Scott Bessent successful an interrogation with NBC News’s “Meet the Press."

Bessent would beryllium the apt dependable to calm markets, RSM main economist Joe Brusuelas told Yahoo Finance connected Friday. So far, that hasn't happened.

Meanwhile, Commerce Secretary Howard Lutnik argued that Trump's protectionist docket volition reconstruct home manufacturing jobs.

“The service of millions and millions of quality beings screwing successful little, small screws to marque iPhones — that benignant of happening is going to travel to America," helium told CBS News’s “Face the Nation”.

None of those arguments person been capable to transportation investors, with stocks connected way to instrumentality different ample limb little astatine Monday's opening bell.
Tesla, Nvidia pb 'Magnificent 7' losses premarket arsenic EU tariff retaliation looms

"Magnificent Seven" stocks are sliding premarket, led by declines successful Tesla (TSLA), Nvidia (NVDA), and Apple (AAPL), aft China announced retaliatory tariffs against the US and the European Union prepares its ain acceptable of countermeasures.

President Trump's tariffs volition apt proceed to beryllium highly disruptive to the tech trade, Apollo main planetary economist Torsten Sløk wrote successful a enactment connected Monday morning. (Disclosure: Yahoo Finance is owned by Apollo Global Management.)

"Roughly 50% of net successful the Magnificent 7 travel from abroad," Sløk wrote. "That is higher than for the S&P 500, wherever the stock is 41%. With commercialized making up a bigger stock of GDP successful the remainder of the satellite than successful the US, the commercialized warfare volition person a disproportionately much antagonistic interaction connected the remainder of the world."

"As a result," Sløk continued, "the Magnificent 7 volition beryllium deed harder connected their planetary net than different S&P 500 companies. Their net could beryllium adjacent much negatively impacted if Europe retaliates successful the signifier of a integer services tax."

Here's a look astatine however the Magnificent Seven tech stocks are trading:
Good morning. Here's what's happening today.
Trump calls connected 'slow moving' Fed to chopped rates arsenic markets proceed tumble

With US stocks acceptable to descend for a 3rd time connected Monday, President Trump posted connected societal media calling for the Fed to chopped rates arsenic markets tumble and immoderate connected Wall Street statesman calling for the US system to extremity into recession this year.

"Oil prices are down, involvement rates are down (the dilatory moving Fed should chopped rates!), nutrient prices are down, determination is NO INFLATION, and the agelong clip abused USA is bringing successful Billions of Dollars a week from the abusing countries connected Tariffs that are already successful place," Trump said connected his societal media platform, Truth Social.

"This is contempt the information that the biggest abuser of them all, China, whose markets are crashing, conscionable raised its Tariffs by 34%, connected apical of its agelong word ridiculously precocious Tariffs (Plus!), not acknowledging my informing for abusing countries not to retaliate."

The President's sweeping retaliatory tariff announcement past week sparked a sell-off successful stocks. China announced 34% tariffs against US imports successful retaliation to Trump's levies.

Nasdaq futures were sinking connected Monday greeting aft sliding into a carnivore marketplace past week, portion the S&P 500 was besides little aft losing much than 10% implicit a span of 2 days.

Oil prices besides sank much than 2.5% connected Monday, extending its losses of 11% past week.

Global stocks tumbled connected Monday greeting with the Hang Seng China Enterprises (^HSCE) index, tumbling much than 13%. The Japanese Nikkei 225 entered a carnivore marketplace connected Monday arsenic it closed 7.8% lower, bringing its losses since a December precocious to 23%.
Europe stocks tumble, but travel disconnected league lows

Stocks successful Europe slumped to levels not seen successful good implicit a twelvemonth arsenic Trump's tariff propulsion near investors successful nary temper to instrumentality risks.

The pan-European Stoxx 600 benchmark (^STOXX) fell astir 4.3% to its lowest level since January 2024, coming disconnected league lows that saw it descent arsenic overmuch arsenic 6.5%.

All sectors connected the Stoxx 600 pulled back, with defence names starring the diminution arsenic investors sold large caller gainers specified arsenic Rheinmetall (RHM.DE, RNMBF). The bank, energy, and security sectors besides took a hit.

“There’s conscionable a wide consciousness of panic,” said Daniel Murray, Zurich-based main enforcement serviceman of EFG Asset Management told Bloomberg. “Everything is getting killed, adjacent bully companies that volition apt fare comparatively well.”

Germany's Dax (^GDAXI) dropped 4.4%, portion the CAC 40 (^FCHI) successful Paris slid 4.6%. London's FTSE 100(^FTSE) retreated 3.8%.
Wall Street banal bulls propulsion successful the towel aft tariff marketplace meltdown

An expanding fig of Wall Street strategists are flipping their stance connected stocks successful 2025 arsenic banal sell-off successful absorption to President Trump's latest tariff announcements.

On Sunday night, Oppenheimer main concern strategist John Stoltzfus chopped his year-end S&P 500 people to 5,950 from 7,100. Stoltzfus had entered 2025 arsenic the astir bullish strategist connected Wall Street.

"While our expectations are for cooler heads to prevail successful the commercialized dialog process that’s apt to travel past week’s tariff authorities announcements the market's reactions and percent of caller declines successful immoderate idiosyncratic stocks (as good arsenic among large equity indices) suggests to america a request to close size expectations successful the adjacent term," Stoltzfus wrote.

With futures tied to the large indexes each down much than 3% again up of Monday's marketplace open, Stoltzfus noted that a "negative transportation book" has taken clasp among investors. That transportation book, Stoltzfus wrote, "seemingly projects antagonistic outcomes to infinity."

Amid the monolithic sell-off that's pushed the benchmark scale down much than 17% from its astir caller all-time precocious connected Feb. 19, Julian Emanuel, who leads the equity, derivatives, and quantitative strategy squad astatine Evercore ISI, besides lowered his year-end S&P 500 people to 5,600 from 6,800 previously.

Evercore is present 1 of 3 equity strategy teams tracked by Yahoo Finance that has reversed people from seeing a affirmative instrumentality for the S&P 500 to projecting a antagonistic twelvemonth for stocks arsenic Trump's hefty tariffs ripple done the banal market.

Emanuel wrote that prolonged argumentation uncertainty has already raised plus volatility and deed the assurance of some consumers and businesses. Eventually, Emanuel believes continued uncertainty that's already weighed connected survey information similar user assurance could trickle into different economical information points. This would effect successful either stagflation, wherever ostentation increases and maturation slows, oregon an "outright recession."

"Investors, CEOs and Consumers dislike uncertainty," Emanuel wrote.
Asia stocks vessel arsenic tariff-inspired rout rages on

Stocks successful Asia tanked connected Monday to adjacent close levels not seen successful immoderate cases since the 2008 planetary fiscal crisis, with the Hang Seng Index (^HSI) the hardest hit.

The Hong Kong gauge closed 13.2% little to notch its worst regular nonaccomplishment since 1997 and to erase each its gains for 2025 truthful far. Meanwhile, the Hang Seng China Enterprises (^HSCE) index, which lists companies specified arsenic Alibaba (BABA, 9988.HK) and BYD (BYDDF, 1211.HK), tumbled 13.7% arsenic shares of each its components fell.

Meanwhile, the CSI 300 (000300.SS) scale successful Shanghai sank 7%, arsenic an "element of panic selling" deed stocks, according to a Janus Henderson strategist.

In Taiwan, the Taiex pulled backmost 9.7% to publication its worst time since 1990 arsenic Apple suppliers TSMC (TSM, 2330.TW) and Foxconn (2317.TW) took a hit.
Japan's Nikkei slides into a carnivore market

The Nikkei 225 entered a carnivore marketplace connected Monday arsenic it closed 7.8% lower, bringing its losses since a December precocious to 23%.

The fast-moving descent successful stocks during the league prompted a circuit-breaker successful trading, per The Wall Street Journal.

The past clip the Japanese blue-chip benchmark was successful a carnivore marketplace was successful August, erstwhile the Bank of Japan's astonishment interest-rate hike sent shockwaves done markets.

Concerns astir the interaction of the commercialized warfare connected Japan's industries and broader system are mounting. The country's premier minister, Shigeru Ishiba, volition talk with President Trump connected a telephone aboriginal Monday, according to reports.
JPMorgan becomes the archetypal Wall Street slope to forecast a US recession pursuing Trump's tariffs

JPMorgan believes the US system volition participate a recession successful the backmost fractional of 2025 arsenic the interaction of President Trump tariffs takes clasp successful the economy.

The firm's main US economist Michael Feroli sees a two-quarter recession occurring successful the backmost fractional of 2025 arsenic GDP contracts by 1% successful the 3rd 4th of the twelvemonth and by 0.5% successful the 4th quarter. For the full-year 2025, Feroli's squad projects GDP volition autumn by 0.3%.

"We present expect existent GDP [gross home product] to declaration nether the value of the tariffs," Feroli wrote successful a enactment to clients connected Friday night.

Feroli added that a "recession successful economical activity" volition propulsion the unemployment complaint up to 5.3%. New information from the Bureau of Labor Statistics released connected Friday showed the unemployment complaint stood astatine 4.2% successful March. While different economists person noted the risks to recession are rising, JPMorgan marks the archetypal large Wall Street probe squad to forecast a recession arsenic Trump's tariffs measurement connected economical growth.

"The pinch from higher prices that we expect successful coming months whitethorn deed harder than successful the post-pandemic ostentation spike, arsenic nominal income maturation has been moderating recently, arsenic opposed to accelerating successful the earlier episode," Feroli wrote. "Moreover, successful an situation of heightened uncertainty consumers whitethorn beryllium reluctant to dip excessively acold into savings to concern spending growth."
Bill Ackman warns of 'economic atomic winter' if Trump doesn't enactment connected Monday

Some of President Trump's salient backers successful the concern assemblage are sounding the alarm connected his rollout of reciprocal tariffs and the resulting marketplace fallout.

Outspoken billionaire capitalist Bill Ackman, who endorsed the president past July pursuing the assassination effort connected Trump, said successful a lengthy station connected X precocious Sunday that, barring Trump calling a "time out" connected his tariffs plans, we could beryllium headed for an "economic atomic winter."

"The President has an accidental connected Monday to telephone a clip retired and person the clip to execute connected fixing an unfair tariff system," Ackman wrote.

"Alternatively, we are heading for a self-induced, economical atomic winter, and we should commencement hunkering down.

"May cooler heads prevail."

In his post, Ackman argued the US is "100% down the president connected fixing a planetary strategy of tariffs that has disadvantaged the country."

"But," Ackman added, "business is simply a assurance crippled and assurance depends connected trust."

On Sunday evening, banal futures were pointing to a 3rd time of crisp losses aft the S&P 500 (^GSPC) fell implicit 10% crossed Thursday and Friday's trading sessions, portion the Nasdaq (^IXIC) entered a carnivore market.

Trump's reciprocal tariff announcements connected Wednesday, dubbed "Liberation Day" by the White House, amazed investors and exceeded astir Wall Street forecasts. Initial estimates enactment the combined tariff complaint connected each US imports good northbound of 20%, which would beryllium the highest successful implicit a century.

Wall Street strategists person slashed their forecasts for the banal marketplace successful effect to Trump's tariff program and astatine slightest 1 steadfast has called for the US to participate recession this twelvemonth arsenic a result.

Ackman said Trump's rollout of these tariffs has acceptable successful question a "process of destroying assurance successful our state arsenic a trading partner, arsenic a spot to bash business, and arsenic a marketplace to put capital."

Instead, Ackman is calling connected Trump to institute a 90-day clip retired to statesman negotiations connected "unfair asymmetric tariff deals, and induce trillions of dollars of caller concern successful our country."

"If, connected the different hand, connected April 9th we motorboat economical atomic warfare connected each state successful the world," Ackman wrote, "business concern volition grind to a halt, consumers volition adjacent their wallets and pouch books, and we volition severely harm our estimation with the remainder of the satellite that volition instrumentality years and perchance decades to rehabilitate.

"What CEO and what committee of directors volition beryllium comfy making large, long-term, economical commitments successful our state successful the mediate of an economical atomic war?

"I don’t cognize of 1 who volition bash so?"
Sun, April 6, 2025 astatine 11:52 PM UTC

Trump says sometimes you person to instrumentality medicine arsenic markets crater again

Speaking to reporters aboard Air Force One connected Sunday, President Trump said sometimes you person to instrumentality medicine erstwhile asked astir the market's caller sell-off, according to Reuters.

The president added that his policies were not intentionally trying to technologist a marketplace sell-off.

"I don't privation thing to spell down, but sometimes you person to instrumentality medicine to hole something," helium said.

Trump's comments travel arsenic markets appeared acceptable to statesman the week wherever they near disconnected Friday, with US banal futures down sharply crossed the committee with Nasdaq 100 futures disconnected much than 4% and futures tied to the Dow and S&P 500 some disconnected much than 3.4%.

Last week, the Nasdaq closed successful a carnivore marketplace and the S&P 500's losses reached 17% from the benchmark index's grounds precocious deed backmost successful February.

This weekend, Trump's economical surrogates attempted to marque wide successful media appearances that the president's daze tariff announcements past week were not a dialog tactic.

Speaking Sunday evening, the president said nary woody connected tariffs with China would beryllium forthcoming unless the US' commercialized shortage with China was fixed. The US' commercialized shortage with China reached $295 cardinal past year.

Trump added that helium has spoken to leaders successful Europe and Asia regarding his tariffs unveiled past week.
Sun, April 6, 2025 astatine 11:45 PM UTC

Nikkei plunges 8% arsenic Asian markets look a unsmooth day

In China, investors braced for a pugnacious time arsenic markets reopened aft an extended weekend, absorbing the interaction of Beijing's retaliatory tariffs connected US goods.

A gauge of Chinese stocks listed successful the US plunged 8.9% connected Friday, reflecting fears of further commercialized tensions. The Hang Seng China Enterprises Index, (^HSCE) 1 of the year’s apical performers, has begun a crisp pullback, dropping 9.4%

Meanwhile, the Nikkei 225 (^N225) fell astir 8%, putting it astatine its lowest levels since 2023.

China’s swift tariff response, pursuing President Trump's tariff hike connected the country, raised planetary recession fears. Goldman Sachs downgraded its targets for Chinese equity indices, with the MSCI China (CHH=F) Index people chopped to 81 from 85.

Read much here.
Sun, April 6, 2025 astatine 10:47 PM UTC

Oil falls again

TOKYO (Reuters) - Oil prices fell much than 3% connected Monday, extending losses from the erstwhile week, connected increasing concerns that a planetary commercialized warfare could dilatory the planetary system and weaken lipid demand, pursuing China's retaliation against U.S. President Donald Trump's tariffs.

Read much here.
Sun, April 6, 2025 astatine 10:38 PM UTC

Catch up connected the latest tariff developments

Our tariff unrecorded blog has been moving passim the weekend, and it has a batch of the discourse you request to cognize heading into the trading week.

The cardinal taxable is that Trump medication officials struck a defiant code connected the president's tariff plans. A sampling, per our accounting:

See the latest updates here.
Sun, April 6, 2025 astatine 10:23 PM UTC

Bitcoin plummets, tests pre-election levels

Bitcoin (BTC-USD) plummeted Sunday, putting it connected way to trial levels from earlier the election, which sent the token connected a rip-roaring rally successful the last months of past year.

At past check, the cryptocurrency was trading astir $78,600 per token, which puts it conscionable supra year-to-date lows.

Ethereum (ETH-USD) saw an adjacent much aggravated plunge, down astir $1,600 per token, its lowest constituent since precocious 2023.
Sun, April 6, 2025 astatine 10:08 PM UTC

Stock futures unfastened mode down

Futures tied to the large indexes were each down astir 4% arsenic trading opened Sunday night: