U.S. President Donald Trump’s tariff war has unleashed chaos on global markets, shredding the “America First” trade narrative.
On Friday, Wall Street bled $2 trillion as the S&P 500 cratered 5%, while the Russell 2000, which tracks smaller firms, plunged 20% from its 2021 peak. The U.S. dollar slid 1.5%, losing its safe-haven sheen against a soaring euro, yen, and Swiss franc. Oil and commodities joined the sell-off, signalling broad economic jitters.
Trump’s steepest tariff hike in a century unveiled Wednesday aims to flex U.S. muscle and boost manufacturing. But economists warn it’s a double-edged sword: higher prices and slower growth loom, with recession odds spiking. “This will stall the economy,” said Mary Ann Bartels of Sanctuary Wealth. “No hiding spot exists, except in fixed-income.” Traders agree, piling into bonds—pushing Treasury yields below 4% and betting on four Fed rate cuts this year.
🚨 Could tariffs actually be good for #Bitcoin? 👀@cyganovroman, CEO & founder of Antix, recently weighed in on this in an interview with @Investingcom
Let’s break down what he said — and why it matters for crypto. 🧵 pic.twitter.com/3bvx1iUXUh
— Antix.in (@antix_in) April 4, 2025Markets Reel, Experts Sound Alarm
The carnage echoes 1971’s gold standard shock, per Bill Gross: “Don’t catch this falling knife—it’s an epic event with instant fallout.” Goldman Sachs’ trading desk buzzed at a 9.5/10 activity level, with 20 billion shares possibly traded Friday well above the 15 billion daily norm.
According to industry polls, hedge funds dumped stocks at a 12-year peak pace, and money managers slashed U.S. equity exposure to November 2023 lows.
𝐌𝐚𝐫𝐤𝐞𝐭 𝐒𝐧𝐚𝐩𝐬𝐡𝐨𝐭 – 𝟒 𝐀𝐩𝐫𝐢𝐥
It was a sea of red across financial markets yesterday as President Trump announced sweeping global trade #tariffs that may set off a trade war.
🇺🇸 U.S. Market, 🇺🇸 U.S. Dollar 👇
Stocks were hit across the globe, and U.S. markets… pic.twitter.com/FjdoBjDJzk
— ATFX (@Atfxglobal) April 4, 2025Growth fears now sync stocks and bond yields, diving into a rare two-year high correlation. Nomura predicts a measly 0.6% GDP rise in 2025 with 4.7% inflation; Barclays sees a 0.1% contraction and 3.7% price hikes. “Tariffs will choke growth short-term,” warned Irene Tunkel of BCA Research. “We’re past peak uncertainty, and next come earnings cuts.” Apollo’s Jim Zelter pegs recession odds at 50%+, noting inflation could handcuff Fed rate relief.
Read: Oil Prices Crash 8% Amid U.S.-China Trade War Escalation
The dollar’s 2.1% Thursday tumble the Bloomberg Dollar Spot Index’s worst since 2005—has traders questioning its refuge role amid this U.S.-sparked storm. As volatility bets climb, hedge funds bet big against it, favouring the yen and euro. “Stocks could sink further, dragging Treasury yields down,” said BMO’s Ian Lyngen. UBS’s Solita Marcelli expects volatility but a year-end rebound if tariff talks soften or Fed cuts kick in. Friday’s jobs report and Jerome Powell’s speech loom as market make-or-breaks.
US Stock Indexes Performance
| Index | Change |
|---|---|
| S&P 500 | Fell 4.8% |
| Nasdaq 100 | Fell 5.4% |
| Dow Jones Industrial Average | Fell 4% |
| MSCI World Index | Fell 3.9% |
| Bloomberg Magnificent 7 Total Return Index | Fell 6.7% |
| Russell 2000 Index | Fell 6.6% |
Currencies Performance
| Currency | Change |
|---|---|
| Bloomberg Dollar Spot Index | Fell 1.5% |
| Euro vs. Dollar | Rose 1.6% to $1.1024 |
| British Pound vs. Dollar | Rose 0.6% to $1.3081 |
| Japanese Yen vs. Dollar | Rose 2% to 146.24 |
Cryptocurrencies Performance
| Cryptocurrency | Change |
|---|---|
| Bitcoin | Fell 4.3% to $81,931.13 |
| Ether | Fell 5.1% to $1,785.72 |
Bonds Performance
| Bond | Change |
|---|---|
| 10-year Treasuries | Yield declined 8 basis points to 4.05% |
| Germany’s 10-year yield | Declined 7 basis points to 2.65% |
| Britain’s 10-year yield | Declined 12 basis points to 4.52% |
Commodities Performance
| Commodity | Change |
|---|---|
| West Texas Intermediate | Fell 6.9% to $66.74 a barrel |
| Spot Gold | Fell 0.8% to $3,107.76 an ounce |
