The U.S. stock market is experiencing significant volatility as new tariffs imposed by President Donald Trump take effect. Dow futures are down 300 points in response to the intensified trade tensions between the U.S. and China. European stocks have also resumed their selloff, with the Stoxx Europe 600 Index dropping 3.3%.
These tariffs are the biggest tax hike in five decades. They’re raising costs on families, creating chaos for businesses, and devastating Arizona retirees. We can’t afford this chaos and confusion from the federal government. https://t.co/WWnBnjSIyC
— Governor Katie Hobbs (@GovernorHobbs) April 7, 2025
Sectors like health care, energy, and real estate have been hit the hardest. European drugmakers, including Novo Nordisk A/S, Novartis AG, and Roche Holding AG, have seen substantial declines. The trade war has also impacted energy demand, sending oil prices below $60 a barrel.
Your retirement shouldn’t be in jeopardy because of the whims of our President.https://t.co/m5XfVpdS27
— Maggie Goodlander (@MaggieG603) April 8, 2025
Trump’s economic policies are making it harder for working people to spend, save, and retire. This will have ripple effects for generations to come. https://t.co/dFuzpopwys
— Randi Weingarten 🇺🇸💪🏿👩🎓🟣🇺🇦 (@rweingarten) April 9, 2025
Major financial institutions, such as Goldman Sachs and Morgan Stanley, have reduced their oil consumption growth forecasts for the year. Automotive stocks in Europe and Asia have been severely affected by the new tariffs. French car parts supplier Valeo, German automakers Volkswagen, Mercedes-Benz, and BMW, and Japanese giants Nissan and Toyota have all reported losses.
Dow point drop amid tariffs
Despite the market turmoil, Goldman Sachs Group Inc. sees an opportunity for long-term investors.
Starmer urges calm as billions are wiped off UK pension pots
Govt doing its best to ignore market movements
Meanwhile experts warn savers not to rush to withdraw their cash
Story @theipaper: https://t.co/h2bnlPykAp
— Hugo Gye (@HugoGye) April 7, 2025
John Flood, a partner at Goldman, believes that if the S&P 500 index continues to fall into the mid-4,000s, investors might be enticed to “buy the dip.”
Mainland Chinese traders have increased their stock purchases in Hong Kong, buying an unprecedented HK$35.6 billion worth of stocks on Wednesday. This brings their total acquisitions this year to HK$574 billion. The People’s Bank of China has intervened to stabilize the yuan by directing major state-owned banks to reduce U.S. dollar purchases.
This move aims to prevent sharp declines in the yuan’s value. U.S. futures contracts have been highly volatile, with the S&P 500 futures falling by as much as 3% before recovering to trade flat. The Nasdaq 100, which recently entered a bear market, showed a marginal increase of 0.3%.
China has called for dialogue to resolve tariff issues and criticized the U.S. for failing to implement agreement commitments related to technology transfer, agricultural products, and financial services in its newly released White Paper. As the trade tensions continue, global markets remain volatile, with investors and analysts reassessing their outlook amidst the ongoing economic uncertainty.