The Article Tells The Story of:
- Dow plunges with record-breaking 2,595-point swing—panic sets in.
- Trump’s 50% China tariff threat sparks fears of a deeper crash.
- Apple loses $640B in 3 days; market confidence collapsing.
- Is this just the beginning of a 2025 financial meltdown?
Will the Crash Deepen or Reverse?
The Dow Jones Industrial Average dropped sharply on Monday, closing 349 points lower. This marked its third straight day in decline. The drop came after President Donald Trump introduced aggressive tariffs on major U.S. trade partners. Markets responded with heavy selling and record trading volumes.
The session became historic. The Dow moved over 2,595 points from its lowest to highest point during the day. This marked the largest intraday point swing in the index’s history. Trading volume hit 29 billion shares, breaking an 18-year record. These figures show how much uncertainty is gripping investors.
Stocks React to Tariff Shock
Trump’s decision to raise tariffs sparked fear across global markets. He warned of even higher tariffs on China. On Monday, he posted that if China did not withdraw a 34% increase in trade rates by April 8, the U.S. would respond with a 50% tariff starting April 9. He also threatened to stop all trade talks.
The impact was immediate. The Dow fell more than 1,700 points at one stage. The S&P 500 lost 0.23%, closing at 5,062.25. At one point, it was down nearly 5% and briefly entered bear market territory. The Nasdaq Composite moved slightly up by 0.10%, ending at 15,603.26, thanks to a late-day rebound in tech stocks like Nvidia and Palantir.
Apple was hit hard. Its shares dropped 3.7%, wiping out $640 billion in market value over three days. Investors worried about how Apple would handle a rise in costs due to tariffs on China, where it manufactures many products.
White House Defends Tariff Plan
Rumors on social media suggested there might be a 90-day pause in tariff implementation. This caused a temporary market rally. However, the White House quickly denied the rumor, calling it “fake news.” The market gave up its gains and slid again.
The Biden administration remains firm. Officials confirmed that tariffs will begin on April 9. China has already responded with its own tariffs. Other countries are preparing to follow.
Trump’s trade advisor Peter Navarro stated that non-tariff violations are also a concern. This means trade negotiations might take longer than expected.
Global Markets and Investors React
Market fear is rising. The CBOE Volatility Index hit 60 on Monday. This level is usually seen only during deep bear markets. Analysts worry that hedge funds may need to sell assets to meet margin calls, creating more pressure on stock prices.
Chris Rupkey, chief economist at FWDBONDS, said, “Margin calls are going out as we speak.” He added that the White House’s tariff policy is shaking investor confidence.
Bill Ackman, head of Pershing Square, posted on social media that Trump is losing the support of global business leaders. He warned that the U.S. could be heading for a self-made economic crisis if the tariff plan continues.
Crypto and Alternatives Show Mixed Response
Some investors moved funds into safer assets like gold and the Japanese yen. Bitcoin and other cryptocurrencies saw a slight rebound on April 3 but remain under pressure. Volatility and uncertainty in financial markets are keeping many investors cautious.
Meanwhile, smaller stocks saw unexpected gains. Janover, a real estate software company, announced it would invest in Solana’s SOL token. The stock soared more than 1,000% after a crypto-focused group acquired majority ownership.
Can Markets Recover?
The S&P 500 has dropped over 10% in the last three trading sessions. This is the steepest decline since the COVID-19 crash in 2020. The Dow and Nasdaq are also on shaky ground.
Investors are watching closely. Any sign of easing tariffs or fresh negotiations could trigger a relief rally. But for now, the risk of more downside remains high.
Markets face multiple threats—tariffs, trade wars, inflation risks, and shaky investor confidence. The Federal Reserve may also delay rate cuts due to inflation concerns caused by tariffs.
What’s Next?
The U.S. is receiving negotiation requests from more than 50 countries. Vietnam has already offered to cut tariffs to zero. But Washington says that’s not enough. The situation may drag on longer than Wall Street expects.
Until there is clarity, markets may stay volatile. Monday’s record-breaking swing is a warning. Investors are bracing for more shocks. The question now is: How deep will this go?
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