After Trump’s Announcement of Radical Tariff Policy, US Stock Market Plummets
After US President Trump announced a radical tariff policy, the US stock market suffered significant losses. On Thursday, the S&P 500 index fell by 4.84%, and the Nasdaq index dropped by 5.97%, both marking the largest declines since 2020. Bitcoin remained stable at around $83K, while Ethereum hovered around $1,800.
Trump Imposes 32% Tax on Taiwan! US Reciprocal Tariffs Officially Implemented: Minimum Entry Fee of 10% to Revitalize US Economy
The S&P 500 index saw a daily evaporation of approximately $2.5 trillion, making the US the biggest loser. Concerns that President Trump’s new round of large-scale tariffs could lead to an economic recession caused the S&P 500 index to lose about $2.5 trillion on Thursday.
Companies most reliant on overseas manufacturing suffered the most significant losses. Apple, whose devices sold in the US are primarily manufactured in China, saw its stock price drop by 9.3%. Companies with manufacturing ties to Vietnam, including Lululemon and Nike, both experienced stock price declines of over 9%. Retailers Target and Dollar Tree, filled with products from abroad, reported stock price drops exceeding 10%.
US assets became the biggest losers. The S&P 500 index fell by 4.84%, and the US dollar index also saw a substantial decline. In contrast, other regions were less affected: the Asian stock market composite index fell by less than 1%, the European Stoxx 600 index dropped by 2.6%, while the euro rose about 1.6% against the dollar, and the dollar fell to a six-month low of 146 against the yen.
Dollar Declines, Trump Shouts: Make America Great Again
Trump has used tariffs as a tool to maintain US power, revitalize domestic manufacturing, and gain geopolitical concessions. However, economists warn that the short-term outcomes of his measures could lead to rising prices in the US, slower economic growth, and even a potential recession.
Yet the instigator, Trump, expressed joy on social media, stating: “The surgery is complete! The patient has survived and is recovering. Predictions are that the patient will be stronger, greater, better, and more resilient than before. Make America Great Again!”
Simultaneously, in the context of a global sell-off of risk assets, the dollar continued to fall, sparking intense debate over whether it can maintain its status as a safe haven during turbulent times.
The Bloomberg Dollar Spot Index plunged by as much as 2.1% on Thursday, marking the largest intraday drop since the index was launched in 2005. Options data indicated that for the first time since September of last year, investors held a pessimistic outlook on the dollar’s performance in the coming month.
Market Focus on Non-Farm Data and Powell’s Speech
The highly touted “America First” trade—buying assets that perform better in the US than in the rest of the world—is reversing as concerns mount that the largest tariff increase in a century could hurt economic growth.
March’s non-farm payroll report is set to be released tonight. Last week, the number of first-time unemployment claims in the US decreased by 6,000 for the week ending March 29, indicating that the labor market remains stable ahead of potential data fluctuations due to import tariffs.
The market will also be watching Fed Chair Powell’s speech later. According to the CME FedWatch index, traders’ pessimism about the US economic outlook has significantly increased the probability of emergency rate cuts by the Federal Reserve, currently pricing in the possibility of four rate cuts this year, compared to just two expected a month ago.
Risk Warning: Investing in cryptocurrencies carries a high level of risk, with prices potentially experiencing significant volatility, which may result in a total loss of principal. Please assess risks carefully.