Trump tariff tailspin worsens, Nasdaq confirms in bear market
By David
French
Fri April 4, 2025 5:11 PM
The disaster continues as for the second day following the draconian tariff announcements all three indexes went into freefall again, today even worse than yesterday with the Dow falling over 500 points further than it fell yesterday, throwing the index once again into an unprecedented 4-figure loss two days in a row. All three indexes suffered losses in the 9-11% range for the last two days, losses for the week topping records from the past five years. The VIX jumped a whopping 50% today after jumping a whopping 40% yesterday, jumping from 30 to 45 in just one day and putting the “fear index” now well into panic territory.
The only good news that was hoped for today would have been encouraging comments from Powell but instead the Fed Chair reinforced the sobering news that inflation would be getting worse and growth would continue to constrict, all of which contributed to the fears of upcoming global recession. These fears were further exacerbated by JP Morgan upping its recession forecast to 60% after just upping it to 40% a few days ago. Next week is expected to be worse still.
But the experts agree that the one huge critical difference between the current downturn and previous major slides is that prior crises were always triggered by unexpected and unforeseen circumstances. This time, however, is deliberate with policy moves that policy makers knew could and likely would trigger exactly this reaction. Volume today hit a never before seen record high of a shattering 26.8 billion shares traded, robbing the S&P alone of $5 trillion in market value, and that doesn’t even include the damage to the Nasdaq and Dow.
DJ: 40,545.93 -1,679.39 NAS: 16,550.61
-1,050.44 S&P: 5,396.52
-274.45 4/3
DJ: 38,314.86 -2,231.07 NAS: 15,587.79
-962.82 S&P: 5,074.08
-322.44 4/4
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