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Trump’s Tariff Turmoil: Markets React with Wild Swings

Trump’s Tariff Turmoil: Markets React with Wild Swings

On April 7, 2025, financial markets saw significant volatility driven by a series of events related to U.S. trade policy toward China. Initially, a false report suggested that President Donald Trump was considering a 90-day pause on tariffs, excluding China. This information, originating from a post on X (formerly Twitter), triggered a temporary market rally. However, the White House swiftly refuted the claim, labeling it "fake news".

Subsequently, President Trump announced a 50% tariff on Chinese goods, which severely impacted the Chinese stock market, which plunged by 14%. This move further escalated the already tense trade war, fueling market nervousness over a potential intensification of the trade dispute. These actions have raised concerns about a possible recession in the United States.

Despite the tumultuous session, the S&P 500 ended in positive territory, closing higher after a strong rebound in the final hours of trading. This demonstrated the index's resilience amid the challenging market conditions.On April 7, 2025, financial markets experienced significant volatility, driven by a series of events surrounding U.S. trade policy toward China. Initially, a false report suggested that President Donald Trump was considering a 90-day pause on tariffs, which briefly boosted market sentiment. However, the White House quickly dismissed the report as "fake news," leading to a reversal of market gains and heightened investor uncertainty.

Subsequently, President Trump announced a 50% tariff on Chinese goods, intensifying the already strained trade relations between the two nations. This move triggered a sharp sell-off in global markets, with the Shanghai Stock Exchange falling 7.34% and Hong Kong's Hang Seng Index dropping 13.22%. Concerns over a potential global recession grew as the market nervously reacted to the worsening trade dispute.

Closing Data for Key Indices:

  • United States:
    • S&P 500: Closed at 5,060.31, down 0.27%.
    • Dow Jones Industrial Average: Finished at 37,965.60, losing 0.91%.
    • Nasdaq: Gained 0.10%, closing at 15,603.26.
  • Europe:
    • DAX (Germany): Ended at 19,789.62, down 4.13%.
    • IBEX 35 (Spain): Closed at 11,785.80, with a loss of 5.12%.
    • FTSE 100 (UK): Finished at 7,702.08, dropping 4.38%.
    • CAC 40 (France): Closed at 6,927.12, losing 4.78%.
  • Asia:
    • Nikkei 225 (Japan): Fell 7.83%, closing at 31,136.58.
    • Hang Seng (Hong Kong): Dropped 13.22%, finishing at 19,828.30.
    • Shanghai (China): Closed at 3,096.58, down 7.34%.

Commodities:

  • Brent Crude Oil: Fell 1.71%, closing at 64.46 USD per barrel, amid fears of global economic slowdown.
  • Gold: Dropped 1.29%, ending at 2,996.37 USD per ounce, falling below the 3,000 USD mark for the first time in months as investors shifted toward more liquid assets.

Market Volatility:

  • S&P 500 VIX: The volatility index peaked at 60 during the session and closed at 46.92, reflecting an increase of +3.55%, signaling heightened fear and uncertainty in the market.

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