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Yahoo
04-04-2025
- Business
- Yahoo
Dow tumbles 1,000 points after China retaliates against Trump's tariffs
US stocks opened sharply lower Friday after China retaliated against the United States for President Donald Trump's tariffs in a tit-for-tat that escalates a global trade war. The Dow fell 1,000 points, or 2.5%, and the broader S&P 500 was 2.6% lower. The tech-heavy Nasdaq was 3% lower and flirting with bear-market territory — a decline of 20% from its peak in December. Investors had been fearful that a dramatic escalation of the trade war could plunge the US and global economies into a recession. JPMorgan analysts said Thursday that America's economy and the broader world economy both had a 60% chance of sinking into a recession this year. The analysts also said odds of a recession would rise if countries began to retaliate against the United States — and China did so Friday. Retaliation raises the risk of further escalation and could diminish hopes for negotiation. 'Markets may actually be underreacting, especially if these rates turn out to be final, given the potential knock-on effects to global consumption and trade,' said Matt Burdett, head of equities at Thornburg Investment Management. 'The tariffs have injected a level of uncertainty and volatility we haven't seen since the early days of the pandemic.' Investors Friday morning wrestled with tariff anxiety while also digesting fresh data that showed stronger-than-expected job growth in March. The US economy added 228,000 jobs in March, a significant increase from February's revised gains of 117,000, according to Bureau of Labor Statistics data released Friday. While job growth beat expectations, tariff angst continues to drive market sentiment. 'Unfortunately, the market is no longer focused on the jobs market and focused squarely on tariffs and trade wars as the US plays chicken with the rest of the world, potentially beginning a downward spiral into a worldwide recession,' said Chris Zaccarelli, chief investment officer at Northlight Asset Management. Traders ditched risky stocks, especially tech companies whose products are manufactured overseas and could soon be subject to enormous tariffs. Apple (AAPL), which tumbled more than 9% Thursday, was down another 5% Friday morning. Amazon (AMZN) was 7% lower. As stock futures tumbled ahead of the opening bell, Trump posted on social media, 'To the many investors coming into the United States and investing massive amounts of money, my policies will never change. This is a great time to get rich, richer than ever before!!!' And as investors sold stocks, they poured money into traditional safe havens, including government bonds and gold. The 10-year Treasury yield, which briefly fell below 4% Thursday for the first time since October, fell firmly below 4% Friday as investors bought bonds to insulate themselves from a potential economic downturn. Bond prices and yields trade in opposite directions. Gold prices surged above $3,130 a troy ounce, setting another record. But investors ditched other commodities, including oil, out of fear that the trade war could send the global economy into a recession. US oil, which plunged nearly 7% Thursday, tumbled another 9% below $62 a barrel. Brent oil futures, the global benchmark, fell 8%. China announced sweeping 34% tariffs on all US goods starting April 10, a major escalation of a trade war that has been raging for years between the world's two largest economies. But the tit-for-tat tariff escalation kicked into high gear after Trump took office for the second time in January. Trump in February placed an additional 10% tariff on all Chinese goods imported to the US and doubled that rate to 20% in March. On Wednesday, Trump announced that tariffs on China would rise to 54%. That's on top of existing import taxes, which he and former President Joe Biden already had in place on the country. So the effective tariff rate America imposes on Chinese goods will be well above 54% starting April 9. Markets have been on edge: The Russell 2000, which tracks smaller companies, entered a bear market Thursday. Stocks tumbled all over the world Friday: European and UK stocks were down more than 3%, on pace for their worst performance in years. On Thursday, the Dow fell more than 1,600 points, or nearly 4%. The S&P 500 fell nearly 5% and the Nasdaq plunged nearly 6%. Each of the three major US indexes recorded its worst performance in about five years, since the pandemic. Thursday's plunge erased $2.5 trillion in market value from the US stock market. 'This is just the tip of the spear. Next it's going to be retaliation from the EU and other nations. Banks, airlines and other service sector firms are going to get targeted,' said RSM's Joe Brusuelas. 'The Chinese are calling Trump's bluff.' UBS on Friday lowered its year-end target for the S&P to 5,800 from 6,400 and said the US economy could enter recession in the near-term due to the impact of Trump's tariffs. 'In the near term, we believe the effective tariff rates could be higher still, and without President Trump taking active steps to reduce tariffs over the next three to six months, we are likely to enter a downside scenario, including a meaningful US recession and lower equity markets,' said Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management, in a note Friday. Trump said Thursday after the market close that he was open to negotiation on trade. He cited TikTok as an example, hoping China would agree to a sale of the popular social media app to a potential US buyer in exchange for lower tariffs. 'Every country has called us. That's the beauty of what we do, we put ourselves in the driver's seat,' Trump told reporters aboard Air Force One Thursday. 'As long as they are giving us something that's good. For instance, with TikTok as an example, we have a situation with TikTok where China will probably say, 'We'll approve a deal, but will you do something on the tariffs?' The tariffs give us great power to negotiate. They always have.' Some countries say they're in active negotiations with the United States to lower the tariff barriers Trump announced this week. The United Kingdom, for example, said it is in talks with the United States to strike an economic agreement, British Foreign Minister David Lammy said on Friday. But other countries chose to retaliate. Canada on Thursday announced retaliatory tariffs on some US-made cars. France's finance minister said the European Union was not considering reciprocal tariffs to respond to the Trump administration's tariffs, because they could hurt European consumers, but the EU could target individual US companies, Eric Lombard said in an interview Friday with CNN affiliate BFMTV. The New York Times on Thursday reported the EU was considering penalties against Tesla. Trump on Thursday dismissed the massive declines in the stock market, saying it's 'to be expected' and that the economy is in a 'transition period.' He called the economy a 'sick patient.' Markets have more to digest on Friday. Federal Reserve Chair Jerome Powell is set to hold a discussion later Friday morning at which he will undoubtedly be asked about markets and the economy in the wake of Trump's tariff announcement. This is a developing story and will be updated. CNN's Matt Egan contributed to this report. Sign in to access your portfolio
CNN
04-04-2025
- Business
- CNN
Dow tumbles 1,000 points after China retaliates against Trump's tariffs
US stocks opened sharply lower Friday after China retaliated against the United States for President Donald Trump's tariffs in a tit-for-tat that escalates a global trade war. The Dow fell 1,000 points, or 2.5%, and the broader S&P 500 was 2.6% lower. The tech-heavy Nasdaq was 3% lower and flirting with bear-market territory — a decline of 20% from its peak in December. Investors had been fearful that a dramatic escalation of the trade war could plunge the US and global economies into a recession. JPMorgan analysts said Thursday that America's economy and the broader world economy both had a 60% chance of sinking into a recession this year. The analysts also said odds of a recession would rise if countries began to retaliate against the United States — and China did so Friday. Retaliation raises the risk of further escalation and could diminish hopes for negotiation. 'Markets may actually be underreacting, especially if these rates turn out to be final, given the potential knock-on effects to global consumption and trade,' said Matt Burdett, head of equities at Thornburg Investment Management. 'The tariffs have injected a level of uncertainty and volatility we haven't seen since the early days of the pandemic.' Investors Friday morning wrestled with tariff anxiety while also digesting fresh data that showed stronger-than-expected job growth in March. The US economy added 228,000 jobs in March, a significant increase from February's revised gains of 117,000, according to Bureau of Labor Statistics data released Friday. While job growth beat expectations, tariff angst continues to drive market sentiment. 'Unfortunately, the market is no longer focused on the jobs market and focused squarely on tariffs and trade wars as the US plays chicken with the rest of the world, potentially beginning a downward spiral into a worldwide recession,' said Chris Zaccarelli, chief investment officer at Northlight Asset Management. Traders ditched risky stocks, especially tech companies whose products are manufactured overseas and could soon be subject to enormous tariffs. Apple (AAPL), which tumbled more than 9% Thursday, was down another 5% Friday morning. Amazon (AMZN) was 7% lower. As stock futures tumbled ahead of the opening bell, Trump posted on social media, 'To the many investors coming into the United States and investing massive amounts of money, my policies will never change. This is a great time to get rich, richer than ever before!!!' And as investors sold stocks, they poured money into traditional safe havens, including government bonds and gold. The 10-year Treasury yield, which briefly fell below 4% Thursday for the first time since October, fell firmly below 4% Friday as investors bought bonds to insulate themselves from a potential economic downturn. Bond prices and yields trade in opposite directions. Gold prices surged above $3,130 a troy ounce, setting another record. But investors ditched other commodities, including oil, out of fear that the trade war could send the global economy into a recession. US oil, which plunged nearly 7% Thursday, tumbled another 9% below $62 a barrel. Brent oil futures, the global benchmark, fell 8%. China announced sweeping 34% tariffs on all US goods starting April 10, a major escalation of a trade war that has been raging for years between the world's two largest economies. But the tit-for-tat tariff escalation kicked into high gear after Trump took office for the second time in January. Trump in February placed an additional 10% tariff on all Chinese goods imported to the US and doubled that rate to 20% in March. On Wednesday, Trump announced that tariffs on China would rise to 54%. That's on top of existing import taxes, which he and former President Joe Biden already had in place on the country. So the effective tariff rate America imposes on Chinese goods will be well above 54% starting April 9. Markets have been on edge: The Russell 2000, which tracks smaller companies, entered a bear market Thursday. Stocks tumbled all over the world Friday: European and UK stocks were down more than 3%, on pace for their worst performance in years. On Thursday, the Dow fell more than 1,600 points, or nearly 4%. The S&P 500 fell nearly 5% and the Nasdaq plunged nearly 6%. Each of the three major US indexes recorded its worst performance in about five years, since the pandemic. Thursday's plunge erased $2.5 trillion in market value from the US stock market. 'This is just the tip of the spear. Next it's going to be retaliation from the EU and other nations. Banks, airlines and other service sector firms are going to get targeted,' said RSM's Joe Brusuelas. 'The Chinese are calling Trump's bluff.' UBS on Friday lowered its year-end target for the S&P to 5,800 from 6,400 and said the US economy could enter recession in the near-term due to the impact of Trump's tariffs. 'In the near term, we believe the effective tariff rates could be higher still, and without President Trump taking active steps to reduce tariffs over the next three to six months, we are likely to enter a downside scenario, including a meaningful US recession and lower equity markets,' said Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management, in a note Friday. Trump said Thursday after the market close that he was open to negotiation on trade. He cited TikTok as an example, hoping China would agree to a sale of the popular social media app to a potential US buyer in exchange for lower tariffs. 'Every country has called us. That's the beauty of what we do, we put ourselves in the driver's seat,' Trump told reporters aboard Air Force One Thursday. 'As long as they are giving us something that's good. For instance, with TikTok as an example, we have a situation with TikTok where China will probably say, 'We'll approve a deal, but will you do something on the tariffs?' The tariffs give us great power to negotiate. They always have.' Some countries say they're in active negotiations with the United States to lower the tariff barriers Trump announced this week. The United Kingdom, for example, said it is in talks with the United States to strike an economic agreement, British Foreign Minister David Lammy said on Friday. But other countries chose to retaliate. Canada on Thursday announced retaliatory tariffs on some US-made cars. France's finance minister said the European Union was not considering reciprocal tariffs to respond to the Trump administration's tariffs, because they could hurt European consumers, but the EU could target individual US companies, Eric Lombard said in an interview Friday with CNN affiliate BFMTV. The New York Times on Thursday reported the EU was considering penalties against Tesla. Trump on Thursday dismissed the massive declines in the stock market, saying it's 'to be expected' and that the economy is in a 'transition period.' He called the economy a 'sick patient.' Markets have more to digest on Friday. Federal Reserve Chair Jerome Powell is set to hold a discussion later Friday morning at which he will undoubtedly be asked about markets and the economy in the wake of Trump's tariff announcement. This is a developing story and will be updated. CNN's Matt Egan contributed to this report.
CNN
04-04-2025
- Business
- CNN
Dow set to tumble 1,500 points after China retaliates against Trump's tariffs
US stocks were set to plunge Friday after China retaliated against the United States for President Donald Trump's tariffs. Dow futures fell 1,500 points, or 3.7%. The broader S&P 500 was set to open 3.7% lower, on pace to enter correction territory – a decline of 10% from a recent peak. The tech-heavy Nasdaq Composite, already in correction, was on pace to start the day 4% lower and is flirting with bear market territory – a decline of 20% from its peak. Investors had been fearful that a dramatic escalation of the trade war could plunge the US and global economies into a recession. JPMorgan analysts said Thursday that America's economy and the broader world economy both had a 60% chance of sinking into a recession this year – and the odds of a recession would rise, the analysts said, if countries began to retaliate against the United States, as China did Friday. Retaliation raises the risk of further escalation and could diminish hopes for negotiation. 'Markets may actually be underreacting, especially if these rates turn out to be final, given the potential knock-on effects to global consumption and trade,' said Matt Burdett, head of equities at Thornburg Investment Management. 'The tariffs have injected a level of uncertainty and volatility we haven't seen since the early days of the pandemic.' Traders ditched risky stocks and poured money into traditional safe havens, including government bonds and gold. The 10-year Treasury yield, which briefly fell below 4% Thursday for the first time since October, fell firmly below 4% Friday as investors bought bonds to insulate themselves from a potential economic downturn. Bond prices and yields trade in opposite directions. Gold prices surged above $3,130 a troy ounce, setting another record. But investors ditched other commodities, including oil, out of fear that the trade war could send the global economy into a recession. US oil, which plunged nearly 7% Thursday, tumbled another 6.1% below $63 a barrel. Brent oil futures, the global benchmark, fell 5.7%. China announced sweeping 34% tariffs on all US goods starting April 10, a major escalation of a trade war that has been raging for years between the world's two largest economies. But the tit-for-tat tariff escalation kicked into high gear after Trump took office for the second time in January. Trump in February placed an additional 10% tariff on all Chinese goods imported to the US and doubled that rate to 20% in March. On Wednesday, Trump announced that tariffs on China would rise to 54%. That's on top of existing import taxes, which he and former President Joe Biden already had in place on the country. So the effective tariff rate America imposes on Chinese goods will be around 70% starting April 9. Markets have been on edge: The Russell 2000, which tracks smaller companies, entered a bear market Thursday. Stocks tumbled all over the world Friday: European and UK stocks were down more than 3%, on pace for their worst performance in years. On Thursday, the Dow fell more than 1,600 points, or nearly 4%. The S&P 500 fell nearly 5% and the Nasdaq plunged nearly 6%. Each of the three major US indexes recorded its worst performance in about five years, since the pandemic. Thursday's plunge erased $2.5 trillion in market value from the US stock market. Trump said Thursday after the market close that he was open to negotiation on trade. He cited TikTok as an example, hoping China would agree to a sale of the popular social media app to a potential US buyer in exchange for lower tariffs. 'Every country has called us. That's the beauty of what we do, we put ourselves in the driver's seat,' Trump told reporters aboard Air Force One Thursday. 'As long as they are giving us something that's good. For instance, with TikTok as an example, we have a situation with TikTok where China will probably say, 'We'll approve a deal, but will you do something on the tariffs?' The tariffs give us great power to negotiate. They always have.' Some countries say they're in active negotiations with the United States to lower the tariff barriers Trump announced this week. The United Kingdom, for example, said it is in talks with the United States to strike an economic agreement, British Foreign Minister David Lammy said on Friday. But other countries chose to retaliate. Canada on Thursday announced retaliatory tariffs on some US-made cars. France's finance minister said the European Union was not considering reciprocal tariffs to respond to the Trump administration's tariffs, because they could hurt European consumers, but the EU could target individual US companies, Eric Lombard said in an interview Friday with CNN affiliate BFMTV. The New York Times on Thursday reported the EU was considering penalties against Tesla. Trump on Thursday dismissed the massive declines in the stock market, saying it's 'to be expected' and that the economy is in a 'transition period.' He called the economy a 'sick patient.' Markets will have more to digest Friday. The US jobs report for March is set to be released at 8:30 am ET, and Federal Reserve Chair Jerome Powell is set to hold a discussion later Friday morning at which he will undoubtedly be asked about markets and the economy in the wake of Trump's tariff announcement. This is a developing story and will be updated.
The Independent
03-04-2025
- Business
- The Independent
Dow and NASDAQ see historically bad day with plunges among worst ever as Trump tariffs spark sell-off
On a historically bad day on Wall Street, the NASDAQ broke a record with its largest single-day point drop in the market's 50-year history as investors responded to President Donald Trump's tariff plan. Both the NASDAQ and Dow Jones suffered their worst days since March 2020 amid the Covid-19 pandemic. The Dow fell 1,679 points, which ranks in the top five for most points lost in a single day. The NASDAQ fell 1,050 points for its largest one-day drop. The drop happened as investors got spooked over the potential impact from President Donald Trump's tariff plan - and fears it could spark a global trade war. Trump has said the policy is necessary to level the playing field for American manufacturers. However, many economists have warned his plan could have a negative impact on the economy as tariffs are expected to raise prices. Despite Thursday's historically bad day, some analysts believed it could have been worse. "Markets may actually be underreacting, especially if these rates turn out to be final, given the potential knock-on effects to global consumption and trade," Sean Sun, portfolio manager at Thornburg Investment Management, told the Associated Press. But Trump remained confident. 'The markets are going to boom,' the president predicted outside the White House Thursday. 'The country is going to boom.' Against the backdrop of sliding markets Thursday, White House officials defended the new tariffs. 'Today, the world starts taking us seriously. Our workforce will finally be treated fairly,' Commerce Secretary Howard Lutnick said in a statement. Hours earlier he told CNN: 'The world should stop exploiting the United States.' Treasury Secretary Scott Bessent issued a statement: 'The President's historic actions will level the playing field for American workers and usher in a new age of economic strength.' But former treasury secretary under Bill Clinton, Larry H. Summers, said he would have left his post if such a plan was unveiled. 'If any administration of which I was a part had launched an economic policy so totally ungrounded in serious analysis or so dangerous and damaging, I would have resigned in protest,' he wrote Thursday on X. While announcing his sweeping plan, Trump vowed to usher in a 'golden age' for America. But Thursday's stock market lacked any of that luster. Major companies — including restaurant chains, retailers, and tech giants —that rely on products from around the globe saw their stocks decline as they brace for supply chain disruptions. Starbucks ended the day down 11 percent while Chipotle fell nearly 4 percent. Shares Gap tanked 20 percent and Macy's dropped almost 14 percent. Apple plunged more than 9 percent while Amazon dipped nearly the same amount. Some automakers also endured a rough day as Trump's 25 percent tariff on imported cars took effect. Tesla stock dropped almost 6 percent and Stellantis, parent company of Jeep, Chrysler, and Dodge, slid nearly 10 percent. Stellantis announced Thursday it was halting production at its factories in Mexico and Canada. About 900 U.S. employees are expected to be laid off, the automaker said Thursday. Meanwhile, investors seemed to have found some solace in comfort foods. French fry producer Lamb Weston gained 10 percent while General Mills, Coca-Cola and Kraft Heinz each gained nearly 3 percent. Thursday's market plunge didn't seem to ease fears that Trump's 'Liberation Day' could dwindle retirement funds tied to the stock markets. Georgia Taylor, founder of Tailored Wealth, told the Financial Times: 'Those near retirement must monitor their pensions closely. Withdrawing during market downturns can deplete funds faster, so seeking advice on a flexible withdrawal strategy is crucial. This highlights the growing need for financial planning to make pensions last longer.' 'The effect on the retirement savings will depend on the years a person has left until retirement,' Maggie Switek, senior director on the research team at the Milken Institute, told The Independent. ' For young adults, with a longer time horizon left until retirement, the effects may be offset by future changes in the market, with the stock markets trending upward over longer periods of time.' Hedge fund manager Bradley Wickens predicted Thursday was just the beginning of a long road ahead for the fallout of Trump's tariff plan. He told the Wall Street Journal: 'The true nature of how negative this is is going to take time to manifest itself during in April and May, as it all dawns on everyone that, 'Wow, these [tariffs] are here for a long time.'" The final impact of Trump's plan is still to be determined as companies and other countries determine their response. European Commission President Ursula von der Leyen called Trump's decision a 'major blow' to the global economy, adding: 'We are now preparing for further countermeasures, to protect our interests and our businesses if negotiations fail.' Canadian Prime Minister Mark Carney announced that his country plans to match the U.S.'s 25 percent tariff on imported vehicles: 'We take these measures reluctantly. And we take them in ways that is intended and will cause maximum impact in the United States and minimum impact in Canada.' In the face of tariff panic and market turbulence, asked how he thought things were going, Trump replied: "I think it's going very well.'
Bloomberg
19-03-2025
- Business
- Bloomberg
Bloomberg Businessweek: Shred Happens
Watch Carol and Tim LIVE every day on YouTube: Arash Hashemi, Co-Founder of Kaizen Food Company, discusses his new cookbook Shred Happens: So Easy, So Good: 100+ Protein-Packed Mediterranean Favorites with a Low-Carb Twist; A Cookbook. Christian Hoffmann, Head of Fixed-Income at Thornburg Investment Management, shares his thoughts on inflation, the Fed and recession concerns. Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.
