empty
04.04.2025 11:13 AM
US stock market on April 4: SP500 and NASDAQ suffering heavy losses

As a result of yesterday's regular session, US stock indices closed in the red. The S&P 500 plummeted by 4.84%, while the Nasdaq 100 lost 5.97%. The industrial Dow Jones dropped by 3.98%. All of this is a reaction to the tariffs announced by Trump.

This image is no longer relevant

Today, Asian indices fell to their lowest level in two months, reacting to the crash of the US stock market, which lost about $2.5 trillion. President Donald Trump's tariff shock, implemented once in a century, prompted investors to reassess their risk evaluations.

Today, futures for US and European stock indices dropped by 0.2% to 0.4%. The dollar continued to decline, and the yield on US 10-year Treasury bonds sank below the closely watched 4% level again on Friday.

The exceptional US trade policies, where America surpasses the rest of the world, arouse concerns that the sharpest tariff hikes by the US in a century will harm economic growth. Investors, who had long bet on the resilience of the US economy, are now revising their positions, considering the potential consequences of protectionist policies. Concerns about US tariffs are driven by their potential impact on global supply chains and international trade. Tariff hikes could lead to higher consumer prices, fading competitiveness for US exporters, and slower economic growth both in the US and abroad. Moreover, US trade policy raises concerns about long-term consequences for the global economic system. Undermining multilateral trade agreements and escalating trade disputes could lead to the fragmentation of the world economy and reduce the effectiveness of international trade.

The ongoing sell-off is also creating an unstable backdrop for today's US employment report and Federal Reserve Chairman Jerome Powell's speech, which are expected to set the tone for markets already concerned about the outlook for the world's largest economy.

Yesterday, Trump stated that he is open to lowering his tariffs if other countries can offer something phenomenal, which suggests that the White House is open to negotiations, despite the insistence of some high-ranking officials. However, this did little to calm the markets, as everyone expects retaliatory tariffs, not negotiations and concessions from US trade partners. Economists say that Trump's measures are likely to end up with inflation acceleration in the US in the short term, slower economic growth, and even a recession.

This image is no longer relevant

Meanwhile, in the commodities market, oil continued its sharp decline after OPEC+ unexpectedly tripled its planned supply increase for May. Gold stabilized after falling from its record high.

As for the technical picture of the S&P 500, the decline continues. The main task for buyers today will be to overcome the nearest resistance at 5,399. This would help continue the upward trend and open the possibility for a jump to the next level at 5,443. Equally important for the bulls will be maintaining control over 5,483, which would strengthen the buyers' positions. In the case of a downward move amid reduced risk appetite, buyers must assert themselves around 5,356. A breakout would quickly push the instrument back to 5,318 and open the way to 5,282.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Update on US stock market on June 27. SP500 and NASDAQ reach new highs

The S&P 500 rose by 0.80%, while the Nasdaq 100 added 0.97%. The Dow Jones Industrial Average climbed by 0.84%. Stocks gained amid talks that the US is getting closer

Jakub Novak 11:58 2025-06-27 UTC+2

Nvidia Shares Reach All-Time High

Yesterday, the NASDAQ technology index closed the day in positive territory, thanks largely to the rally in Nvidia Corp. shares, which reached a historic high. The leading producer

Jakub Novak 11:06 2025-06-26 UTC+2

The Stock Market Is Approaching Dangerous Levels

The wave pattern on the 24-hour chart for the #SPX instrument appears generally clear. At this point, the formation of an upward trend segment is presumably complete. In my view

Chin Zhao 12:35 2025-06-25 UTC+2

Update on US stock market on June 25. Key stock indices growing in confidence

S&P500 Snapshot of the US major stock indexes on Tuesday: Dow +1.2%, NASDAQ +1.4%, S&P 500 +1.1% (closed at 6,092, within a 5,700–6,300 range). The stock market traded with

Jozef Kovach 11:52 2025-06-25 UTC+2

US stock market in uptrend as ceasefire announced between Israel and Iran

S&P500 Snapshot of the benchmark US stock indices on Monday: Dow +0.9%, NASDAQ +0.9%, S&P 500 +1%, S&P 500 at 6,025, range 5,600–6,200 In the early hours of June

Jozef Kovach 12:37 2025-06-24 UTC+2

Update on US stock indices on June 24. SP500 and NASDAQ surge amid good news

US stock indices closed higher yesterday. The S&P 500 rose by 0.94%, and the Nasdaq 100 also gained 0.94%. The industrial Dow Jones strengthened by 0.88%. Oil prices fell while

Jakub Novak 10:54 2025-06-24 UTC+2

S&P 500 Forecast for June 24, 2025

S&P 500 The new week began with confident growth for the S&P 500. The support from the balance line indicator (the red moving average) on the weekly timeframe worked well

Laurie Bailey 04:44 2025-06-24 UTC+2

Update on US stock market on June 23. US stock indices close mixed. Oil trades higher amid geopolitical tensions

Last Friday, US stock indices closed mixed. The S&P 500 fell by 0.22%, and the Nasdaq 100 lost 0.55%, while the industrial Dow Jones gained 0.08%. Today, futures for European

Jakub Novak 11:09 2025-06-23 UTC+2

Uptrend in US stock market about to crack. Will market maintain bullish momentum until end of summer?

The US stock market maintains an appearance of stability, but the foundation beneath this calm may prove fragile. Indices remain near historic highs. Nonetheless, a potentially explosive combination is brewing

Anna Zotova 17:09 2025-06-20 UTC+2

Update on US stock market on June 20. SP500 and NASDAQ open with gains

Yesterday, US financial markets were closed. US stock indices ended the electronic trade mixed: the S&P 500 slipped by 0.03%, the Nasdaq 100 gained 0.13%, and the Dow Jones Industrial

Jakub Novak 11:54 2025-06-20 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.