According to ChainCatcher and 4E monitoring, Trump's far more aggressive tariff plan than market expectations has triggered strong investor concerns about a potential full-scale trade war leading to economic recession. On Thursday, the three major US stock indices plummeted, with the Nasdaq falling 5.97%, its largest single-day drop since March 2020; the S&P 500 dropped 4.84%, and the Dow fell 3.98%, both their largest single-day declines since June 2020. Large tech stocks were hit hard, as tariffs are expected to impact supply chains, with Apple plunging over 9%. The "Magnificent 7" saw their market value evaporate by approximately $1 trillion in one day, dropping to its lowest point since early August last year.
The crypto market declined across the board. Bitcoin dropped from its pre-tariff high of $88,000 to nearly $81,000, though its decline was less severe compared to tech stocks. Market sectors were generally hammered, with the overall crypto market capitalization falling nearly 8%. The crypto fear and greed index, which had somewhat recovered in March, has again fallen back into the "extreme fear" zone.
Foreign exchange and commodity markets were also affected. The US dollar index fell 1.61% to its lowest level since October 2024, erasing all gains since Trump's election. Global economic growth prospects caused oil prices to plummet nearly 7%, marking its largest single-day drop since July 2022. Spot gold prices remained relatively stable, essentially unchanged from the previous trading day.
Trump's tariff announcement caused a financial market crash. With the March non-farm employment report set to be released tonight, the labor market is expected to remain stable before potential import tariff impacts. Market focus is on Powell's speech. According to the CME FedWatch tool, traders' pessimism about the US economic outlook has significantly increased the probability of an emergency Fed rate cut, with the number of expected rate cuts this year rising from two to four in the past month.
