On April 4th, according to 4E monitoring, Trump's far more aggressive tariff plan than market expectations triggered strong investor concerns about a comprehensive trade war potentially leading to an economic recession. On Thursday, the three major U.S. stock indexes fell sharply, with the Nasdaq dropping 5.97%, its largest single-day decline since March 2020; the S&P 500 fell 4.84%, and the Dow dropped 3.98%, both their largest single-day declines since June 2020. Large tech stocks plummeted, 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, falling 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 near $81,000, and while the decline was significant, it remained relatively resilient compared to tech stocks. Most market sectors were hit hard, with the overall crypto market capitalization falling nearly 8%. The crypto fear and greed index, which had somewhat recovered in March, returned to the "extreme fear" zone.
Foreign exchange and commodity markets were also affected. The U.S. dollar index fell 1.61% to its lowest level since October 2024, erasing all gains since Trump's election. The prospect of slowing global economic growth caused oil prices to plummet nearly 7%, marking its largest single-day decline 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, and according to the CME FedWatch tool, traders' pessimism about the U.S. economic outlook has significantly increased the probability of an emergency Fed rate cut, with the number of rate cuts this year increasing from two to four in the past month.
eeee.com, as a financial trading platform supporting cryptocurrencies, stock indexes, commodities, gold, and forex, has recently launched a USDT stablecoin financial product with an 8% annual yield, providing investors with a potential hedging option. 4E reminds you to be aware of market volatility risks and allocate assets reasonably.
