MARKET SNAPSHOT
U.S. stocks were mostly lower on a rash of tariff headlines. Treasury yields rose as many investors feared that tariffs may cripple the economy and boost prices. Oil prices fell on tariff developments and a larger OPEC+ output increase planned for May. The dollar rose while gold futures fell 2% -- and now have seen their largest three day dollar decline since April 15, 2013.
MARKET WRAPS
EQUITIES
A false dawn on the tariff front fueled a brief rally in the morning, with the S&P 500 surging some 7% from its low on the day, before the administration clarified that there will be no delay in implementing new levies. The episode, which touched off wild swings throughout the trading day, highlights the increasing desperation on Wall Street as the trade-war rout of 2025 extends into a new week.
The Dow Jones Industrial Average fell 0.9%, the Nasdaq Composite finished 0.1% higher, and the S&P 500 closed down 0.2%.
President Donald Trump said he plans to add an additional 50% tariff on China starting Wednesday if the country doesn't withdraw its retaliatory tariff increase on the U.S. "Additionally, all talks with China concerning their requested meetings with us will be terminated!" he wrote. Stocks took their latest leg down in response. The S&P stood close to bear-market territory, defined as a 20%-plus decline from a recent peak.
Earlier Monday, Chinese shares ended sharply lower as investors backed away from riskier assets after Trump's "Liberation Day" tariffs. Solar and technology stocks led losses.
The benchmark Shanghai Composite Index closed 7.3% lower -- below the key 3100 level -- marking its largest one-day loss since February 2020. The Shenzhen Composite Index ended 11% lower and the ChiNext Price Index fell 12.5%. Hong Kong's Hang Seng Tech Index slid 17.2% as the global trade war escalated.
Japan's Nikkei Stock Average closed 7.8% lower -- its lowest level since October 2023. The percentage drop was the biggest since Aug. 5. Financial stocks led the declines as near-term prospects for further rate hikes by the Bank of Japan dimmed.
Stocks in Australia fell, as the S&P/ASX 200 Benchmark Index fell 4.2% to 7343.30 -- the third consecutive session of decreases.
Stocks in New Zealand fell, as the S&P/NZX 50 Index declined 3.7% to 11775.88, the second consecutive session of decreases.
COMMODITIES
Crude futures fell for a third straight session as tariff news continued to rock markets.
West Texas Intermediate settled 2.1% lower at $60.70 a barrel -- a four-year-low -- and Brent crude also fell 2.1% to $64.21 a barrel.
Added to the overall bearishness around the tariff effect on demand was the larger OPEC+ output increase planned for May, and Saudi Arabia slashing its official selling prices for next month. "The spec loaded up on a pretty big net long position heading into Trump's Liberation Day, only to get ambushed by a rollout that was much more extreme than anticipated," Mizuho's Robert Yawger said.
Front-month Comex April gold lost 2% to $2951.30 -- down 6% over the last three sessions. Uncertainty around President Trump's tariff plans has only increased since the reciprocal tariffs were confirmed April 2, and gold is not seeing safe haven flows.
TODAY'S TOP HEADLINES
Elon Musk Knocks Trump's Trade Philosophy
WASHINGTON-Billionaire businessman Elon Musk, one of President Trump's most visible and influential advisers, is leveling veiled critiques at the White House's trade agenda, exposing tensions within the administration over the president's far-reaching tariffs.
On Monday morning, Musk posted a well-known video of economist Milton Friedman touting free trade by explaining how the component parts of a pencil require complex supply chains. That followed a weekend where Musk took aim at Trump's top trade adviser, Peter Navarro, suggesting that his push for steep and broad-based trade barriers is wrongheaded.
"A PhD in Econ from Harvard is a bad thing, not a good thing," Musk posted in response to a user on X who lauded Navarro's education. Musk, who leads several companies, also implied that Navarro lacked hands-on experience in the economy. "He ain't built s-," Musk wrote-a post he later deleted.
Wall Street Starts to Speak Out Against Trump's Tariffs
In public and private, the big names of high finance are trying to get a message across to President Trump: stop the madness.
For weeks, as the contours of Trump's sweeping tariff plans came in and out of focus, Wall Street's leaders kept any concerns they had to themselves. Now, after a three-day market meltdown that has erased trillions of dollars in value from U.S. stocks, some are speaking out, including those who have been vocal supporters of Trump.
Bill Ackman, the billionaire hedge-fund manager behind Pershing Square, called for a 90-day pause in the tariffs to negotiate with other countries, warning that the alternative was "a self-induced, economic nuclear winter."
Trump Says Tariffs Are Reciprocal. They Aren't.
Donald Trump has repeatedly said that his move to impose wide-ranging tariffs is based on the simple concept of reciprocity: The U.S. should put the same conditions on imports from other countries that they impose on our goods through tariffs and other trade barriers.
But the tariff scheme he announced isn't reciprocal and isn't based on measuring foreign trade barriers. Instead, it simply measures bilateral trade deficits and comes up with tariff numbers from there.
Those are two very different things, and could be one reason why global financial markets are reacting so badly.
Jamie Dimon Warns Tariffs Will Raise Prices, Slow Growth
Jamie Dimon said he is concerned about how President Trump's new tariffs will affect America's long-term economic alliances, which he said have been key to the country's "extraordinary standing in world affairs."
In his annual letter to shareholders, the JPMorgan Chase chief executive said the tariffs are likely to drive up inflation on imported goods and domestic prices, with input costs rising.
"Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth," Dimon wrote in the letter that touched on issues including the tax code, military security, healthcare costs and the country's education system.
MicroStrategy Expects to Post Loss After Bitcoin Price Slumps
MicroStrategy expects to report a loss for the first quarter and warned of more losses to come as the value of its cryptocurrency holdings falls.
The bitcoin-buying software company said Monday that it notched $5.91 billion in unrealized losses on its digital assets for the quarter that ended March 31.
That should result in a net loss for the quarter, despite a related $1.69 billion income tax benefit, MicroStrategy said.
Expected Major Events for Tuesday
01:00/AUS: Apr Westpac - Melbourne Institute Consumer Sentiment Survey
01:00/PHI: Feb Labour Force Survey
01:30/AUS: Mar NAB Business Survey
04:00/INA: Mar CPI
04:30/JPN: Mar Corporate Insolvencies
05:00/JPN: Mar Economy Watchers Survey
07:00/MAL: Mar International Reserves, end of month
08:00/TAI: Mar Price Indexes: Consumer Prices $(CPI.UK)$
23:00/SKA: Mar Economically Active Population Survey, including Unemployment
All times in GMT. Powered by Onclusive and Dow Jones.
Write to us at singaporeeditors@dowjones.com
We offer an enhanced version of this briefing that is optimized for viewing on mobile devices and sent directly to your email inbox. If you would like to sign up, please go to https://newsplus.wsj.com/subscriptions.
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
April 07, 2025 16:58 ET (20:58 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Comments