Wall Street ends with heavy losses on fears Trump tariffs will trigger recession
By David French
Thu April 3, 2025 4:00 PM
As was widely expected, today was a historic disaster as all three indexes suffered their biggest one-day percentage losses in five years due to massive fears triggered by yesterday’s sweeping and severe tariffs announcement. All the indexes closed down in the 4-6% range. All expectations for earnings and revenues for most companies are going to be lowered. Big tech got hit particularly hard with Apple, Amazon, and Nvidia all down about 9%. There is a mystery in that, though the freefall began right at open, at about 11 a.m. a significant recovery began that abruptly halted, again on all three indexes, right at 1 p.m. when the freefall then continued unstopped for the rest of the session. I’ve found no explanation for what happened at either 11 a.m. or 1 p.m.
Today’s VIX rose a very dramatic 40% and is today at 30.02 right on the cusp of the benchmark between mere anxiety and outright panic. But to put that in perspective, it’s been very near 30 three times since December and even rose to 40 for a few days last August. However, it took just six weeks to go from 15 to 30. And though the Dow lost about 4%, it is still nowhere near the nearly 12% it lost on Black Tuesday in 1929, the day that triggered the Great Depression. However, as is well expected, today’s events have now created the consensus that we are heading for recession if these tariffs are sustained. There are great concerns about what’s coming in the next few days, weeks, months. Q2 is expected to be very bad. Per the CBOE, volume was enormous at 21 billion shares traded.
DJ: 42,225.32 +235.36 NAS: 17,601.05
+151.16 S&P: 5,670.97
+37.90 4/2
DJ: 40,545.93 -1,679.39 NAS: 16,550.61
-1,050.44 S&P: 5,396.52
-274.45 4/3
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