World Affairs Forum
4th April 2025 – (New York) The Dow Jones futures experienced a significant sell-off early on Friday, plummeting by over 1,000 points, or approximately 2.48%, as markets reacted to China’s announcement of a 34% tariff on all U.S. imports in retaliation for President Trump’s earlier tariff hikes.
With investors seeking refuge from market volatility, capital flooded into the bond market, resulting in a sharp decline in the yield on 10-year U.S. Treasury bonds, which dropped by 0.151 percentage points to 3.882%. This marks a notable moment, as it is the first time since October 16 of last year that yields have dipped below 4%, achieving a six-month low.
In London, HSBC Holdings saw its share price contract by as much as 8.4%, reaching 737.1 pence, reflecting a 13.36% decrease compared to Wednesday’s closing price in Hong Kong. Similarly, Standard Chartered shares fell by 13.82%.
The escalating trade war has not only impacted stock valuations but has also intensified speculation regarding potential retaliation from the European Union and other trading partners. President Trump remarked on Thursday of his willingness to engage in negotiations; however, given the low tariff levels of many countries and his emphasis on achieving trade surpluses, it remains uncertain what concessions may be forthcoming.
As attention turns to economic indicators, the March jobs report is anticipated to reveal an increase in nonfarm payrolls by 131,000, alongside a slight rise in the unemployment rate to 4.2%. Analysts do not expect this report to reflect the immediate impacts of Trump’s tariffs or any subsequent job losses linked to market responses.
Fed Chairman Jerome Powell is scheduled to speak later today, providing insights into the economic and monetary policy outlook, though his address may not introduce any new developments regarding the tariffs, which continue to evolve amidst fluctuating market conditions.
Overall, Thursday saw a dramatic collapse across the stock market, with the Dow shedding 4%, the S&P 500 down 4.8%, and the Nasdaq composite declining by 6%. The small-cap Russell 2000 entered bear market territory after a 6.6% drop, emphasising the widespread deterioration in market sentiment. Collectively, the equity market experienced a staggering loss of $3.5 trillion in market capitalisation, a stark reminder of the volatility introduced by the ongoing trade tensions.
With investors seeking refuge from market volatility, capital flooded into the bond market, resulting in a sharp decline in the yield on 10-year U.S. Treasury bonds, which dropped by 0.151 percentage points to 3.882%. This marks a notable moment, as it is the first time since October 16 of last year that yields have dipped below 4%, achieving a six-month low.
In London, HSBC Holdings saw its share price contract by as much as 8.4%, reaching 737.1 pence, reflecting a 13.36% decrease compared to Wednesday’s closing price in Hong Kong. Similarly, Standard Chartered shares fell by 13.82%.
The escalating trade war has not only impacted stock valuations but has also intensified speculation regarding potential retaliation from the European Union and other trading partners. President Trump remarked on Thursday of his willingness to engage in negotiations; however, given the low tariff levels of many countries and his emphasis on achieving trade surpluses, it remains uncertain what concessions may be forthcoming.
As attention turns to economic indicators, the March jobs report is anticipated to reveal an increase in nonfarm payrolls by 131,000, alongside a slight rise in the unemployment rate to 4.2%. Analysts do not expect this report to reflect the immediate impacts of Trump’s tariffs or any subsequent job losses linked to market responses.
Fed Chairman Jerome Powell is scheduled to speak later today, providing insights into the economic and monetary policy outlook, though his address may not introduce any new developments regarding the tariffs, which continue to evolve amidst fluctuating market conditions.
Overall, Thursday saw a dramatic collapse across the stock market, with the Dow shedding 4%, the S&P 500 down 4.8%, and the Nasdaq composite declining by 6%. The small-cap Russell 2000 entered bear market territory after a 6.6% drop, emphasising the widespread deterioration in market sentiment. Collectively, the equity market experienced a staggering loss of $3.5 trillion in market capitalisation, a stark reminder of the volatility introduced by the ongoing trade tensions.
