publication
2025-04-04 22:06
Exchange of “accurate” blows between the rule of the United States and the PRC knocked out New York stock exchanges. S & P500 and NASDAQ have recorded the strongest declines since 2020. The market is terrified of the vision of a global trade war and a replay of the great crisis.
The S & P500 index ended the Friday session of 5 074.08 points, which meant a drop by as much as 5.97% after a very strong discount by 4.84% recorded the day before. Nasdaq Composite dived by 5.82% and finished with a score of 15,587.79 points. After he gave nearly 6%on Thursday. The industrial average of Dow Jones went down by 5.50% and for the first time since August landed below 40,000 points. These were the strongest declines at Wall Street for 5 years – that is, since the time of Covid's panic.
The scale and impetus for American actions is one thing, but its Friday universality is not often found. Virtually the entire market was dyed red. The list of large corporations with a decrease in capitalization of 5-9% was too long to make sense to exchange it. All market sectors shone red. Just like all the largest companies. In the entire S & P500 index, only 14 values, i.e. less than 3%before the discount.
Similarly to Thursday, the reason for such a panic sales of action were events at the front of the customs wars of President Donald Trump. The White House host “shouted” to investors that “my politician would never change” and demanded from the president of the federal reserve a reduction in interest rates.
– It would be a great time for the Fed President Jerome Powell to lower interest rates. He is always 'late', but now he could change his image quickly. Energy prices have dropped, interest rates dropped, inflation dropped, even eggs dropped by 69 percent, and the number of jobs increased, all in two months – a great win for America – wrote on the Truth Social Trump platform.
Jerome Powell himself spoke on the same day the same day. The head of the Fed pointed to “greater than expected” deterioration of macroeconomic data, including higher inflation and slower growth. He decided, however, that it would be “too early” for the central bank to enter the action. Meanwhile, the market was even speculated about the “emergency” reduction of interest rates at the unannounced FOMC meeting. However, the term market still values that the next cutting of feet in Feda will not reach in June. But the likelihood of foot reduction by 50 pb is already valued at over 25%. – results from the Fedwatch Tool calculations.
Meanwhile, Donald Trump's policy is not intended to stick to the Chinese, who on Friday threatened to introduce equally high, 34 %-customs duties on all American imports. And it's practically immediately, from April 10. In fact, we are one step away from the global trade war. Such in the style of the 1930s, which drove into the world into great depression and preceded World War II. At that time, the Americans began, introducing the catastrophic Smoot-Hawley act. It was the imported projects in the USA – not the Wall Street crash – they gave birth to a great crisis.
Considering all this, it should be noted that the moods of Wall Street are so fatal that they can not be much worse. The popular Fear & Greed Index barometer by CNN fell to just 4 (in words: four) points on Friday, pointing to “excremical fear”. This indicator can take values from 0 to 100. Therefore, it cannot be much worse – at least according to the instructions.
It is also worth noting that the declines on Wall Street were not even unexpectedly stopped by strong data from the American labor market. It is true that the second month in a row increased the unemployment rate, but the increase in employment in non -agricultural sectors was nearly 70% higher than the market consensus, and wage growth slightly slower than the expectations of most economists. None of the market forecasts expected such high “Payrolls” results.
