Market Performance
📉 Dow Jones: -3.98% (biggest drop since June 2020)
📉 Nasdaq: -5.97% (worst since March 2020)
📉 S&P 500: -4.84% (entered correction)
📈 VIX Index: 30.02 (highest since 2024)
Key Drivers
1. Trump’s Tariff Shock
- 10%-49% tariffs on most trading partners
- China hit with 54%, Vietnam 46%
- EU, Japan, Canada retaliate, raising trade war fears
2. Tech Stocks Crash
- Apple -9% (Cook’s stock sale + supply chain risks)
- Meta, Amazon -9%, Nvidia -7%, Tesla -5%
- Nike -10% (Vietnam tariffs hurt 50% of production)
3. Recession Risks Rise
- Moody’s predicts 40% US recession chance
- Fitch warns tariffs could jump from 2.5% to 22%, disrupting global supply chains
4. Fed Rate Cut Bets Grow
- Market prices in 3-4 rate cuts in 2024
- May cut probability rises to 24%
Other Market Moves
✅ Some Chinese Stocks Rise:
- Xiaomi +3%, Meituan & Tencent edge up
- Lianzhang Portal soars 16%
✅ Safe Havens Gain:
- 10-year Treasury yield falls 7.2 bps to 4.0398%
✅ Oil Prices Collapse:
- WTI crude -6% to $66.61/barrel (OPEC+ output hike + demand fears)
Corporate News
📉 Tesla Q1 deliveries drop 13%, stock -5%
📉 Microsoft pauses data center projects (UK, Australia)
📉 Google in AI deal talks with CoreWeave, but shares fall
Outlook
The April 3 crash reflects rising trade war risks and economic uncertainty. Watch for:
✔ More tariff retaliation
✔ Fed policy shifts
✔ Earnings damage
Investors should brace for continued volatility.
