empty
04.04.2025 11:13 AM
US stock market on April 4: SP500 and NASDAQ suffering heavy losses

As a result of yesterday's regular session, US stock indices closed in the red. The S&P 500 plummeted by 4.84%, while the Nasdaq 100 lost 5.97%. The industrial Dow Jones dropped by 3.98%. All of this is a reaction to the tariffs announced by Trump.

This image is no longer relevant

Today, Asian indices fell to their lowest level in two months, reacting to the crash of the US stock market, which lost about $2.5 trillion. President Donald Trump's tariff shock, implemented once in a century, prompted investors to reassess their risk evaluations.

Today, futures for US and European stock indices dropped by 0.2% to 0.4%. The dollar continued to decline, and the yield on US 10-year Treasury bonds sank below the closely watched 4% level again on Friday.

The exceptional US trade policies, where America surpasses the rest of the world, arouse concerns that the sharpest tariff hikes by the US in a century will harm economic growth. Investors, who had long bet on the resilience of the US economy, are now revising their positions, considering the potential consequences of protectionist policies. Concerns about US tariffs are driven by their potential impact on global supply chains and international trade. Tariff hikes could lead to higher consumer prices, fading competitiveness for US exporters, and slower economic growth both in the US and abroad. Moreover, US trade policy raises concerns about long-term consequences for the global economic system. Undermining multilateral trade agreements and escalating trade disputes could lead to the fragmentation of the world economy and reduce the effectiveness of international trade.

The ongoing sell-off is also creating an unstable backdrop for today's US employment report and Federal Reserve Chairman Jerome Powell's speech, which are expected to set the tone for markets already concerned about the outlook for the world's largest economy.

Yesterday, Trump stated that he is open to lowering his tariffs if other countries can offer something phenomenal, which suggests that the White House is open to negotiations, despite the insistence of some high-ranking officials. However, this did little to calm the markets, as everyone expects retaliatory tariffs, not negotiations and concessions from US trade partners. Economists say that Trump's measures are likely to end up with inflation acceleration in the US in the short term, slower economic growth, and even a recession.

This image is no longer relevant

Meanwhile, in the commodities market, oil continued its sharp decline after OPEC+ unexpectedly tripled its planned supply increase for May. Gold stabilized after falling from its record high.

As for the technical picture of the S&P 500, the decline continues. The main task for buyers today will be to overcome the nearest resistance at 5,399. This would help continue the upward trend and open the possibility for a jump to the next level at 5,443. Equally important for the bulls will be maintaining control over 5,483, which would strengthen the buyers' positions. In the case of a downward move amid reduced risk appetite, buyers must assert themselves around 5,356. A breakout would quickly push the instrument back to 5,318 and open the way to 5,282.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Stocks slide sharply as broad tariffs raise recession risk

S&P 500 US equities plunged on Thursday as President Donald Trump's sweeping new tariffs triggered a sharp sell-off and reignited fears of a global recession. The Dow fell by 4%

Jozef Kovach 11:14 2025-04-04 UTC+2

Update on US stock market: Trump strikes at global trade with tariffs and crashes markets

S&P500 Update on April 03 Snapshot of benchmark US stock indices on Wednesday: Dow, NASDAQ, S&P 500: all -2% S&P 500 at 5,535 in the range of 5,500 to 6,000

Jozef Kovach 11:57 2025-04-03 UTC+2

Stock Market on April 2: S&P 500 and NASDAQ Hit New Yearly Lows

At the close of yesterday's regular session, U.S. stock indexes ended in positive territory. The S&P 500 rose by 0.67%, the Nasdaq 100 gained 0.87%, and the Dow Jones Industrial

Jakub Novak 09:13 2025-04-03 UTC+2

US markets show resilience despite tariff concerns and economic weakness

S&P 500 The US stock markets paused ahead of President Trump's anticipated tariff announcements. The major indices ended the session mixed: the Dow Jones closed flat, the Nasdaq gained 0.9%

Jozef Kovach 12:15 2025-04-02 UTC+2

Update on US stock market on April 2: SP500 and NASDAQ regain their footing before crucial event

Following yesterday's regular session, US stock indices closed mixed. The S&P 500 rose by 0.38%, while the Nasdaq 100 gained 0.87%. The industrial Dow Jones dipped by 0.04%. Asian indices

Jakub Novak 11:19 2025-04-02 UTC+2

Why tariffs may trigger rally instead of crash?

The current panic in the markets may be overblown. If tomorrow's tariffs prove to be less damaging than expected, we could witness a short but sharp rebound, particularly

Anna Zotova 11:03 2025-04-01 UTC+2

US stock market: spike from strong support. Growth realistic

S&P500 Update on US stock market Snapshot of benchmark stock indices on Monday: Dow +1%, NASDAQ -0.1%, S&P 500 +0.6%, S&P 500 at 5,612 trading in a range of 5,500

Jozef Kovach 10:48 2025-04-01 UTC+2

Update on US stock market on April 1. SP500 and NASDAQ fall to new one-year low

As a result of Friday's regular session, US stock indices closed mixed. The S&P 500 rose by 0.55%, while the Nasdaq 100 dropped by 0.14%. The industrial Dow Jones gained

Jakub Novak 08:56 2025-04-01 UTC+2

Stock market on March 31: S&P 500 and Nasdaq edge closer to yearly lows

At the close of Friday's regular trading session, US stock indices ended in negative territory. The S&P 500 fell by 1.97%, while the Nasdaq 100 declined by 2.70%

Jakub Novak 12:27 2025-03-31 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.