OR Wall Street received new blows on Friday (04.04.2025) for a second consecutive day after China reacted with new duties In American products, increasing fears that a trade war will lead the planet to recession.
The Dow Jones industrial index fell 2,231 points or 5.5%, following a loss of 1,679.39 points on Thursday. The S&P 500 slid 5.9% after the decline of 4.84% on Thursday and technological Nasdaq lost 5.82%, as many technology companies have a report in China. On Thursday, Nasdaq fell 6%. It is noteworthy that Wall Street’s “fear” index, Vix, which measures market volatility, closed at 47%.
The Chinese Ministry of Commerce said on Friday that the country would impose a 34% levy on all US products. This fits the duty on Chinese products entering the US presented by President Donald Trump on Wednesday. After the Chinese announcement, Trump reacted, saying that China’s response to the trade war he started was a “panic move”.
“China played it wrong. He panicked and this is the only thing he doesn’t have the luxury of doing, “Donald Trump wrote in a post.
“The Trump government may play a courage game with commercial partners, but market participants are not willing to wait for the results,” Michael Arone, a SPDR -led strategic investment analyst at State Street Global Advisors, told CNBC. “Investors sell first and ask questions later.”
Companies with a large exposure to China led the fall with Apple and Qualcomm fell 7.2% and 8.5% respectively. Tesla loses 10.4% and Caterpillar loses 6%. Nvidia declines about 8%.
Bank shares are falling in the freshman as concerns have increased to slow down the US economy. Morgan Stanley dropped 5%, while Goldman Sachs lost 4.5%. Citigroup and JPMorgan Chase each more than 4%, while Wells Fargo dipped 5%.
The yield on the 10 -year government bond fell below 4% on Friday, as investors flooded security bonds, pushing prices up and down. JPMorgan slowly increased on Thursday the chances of recession this year to 60% from 40%.