Market Recap
On Friday, global financial markets were rocked by a sharp sell-off after US President Trump announced a large-scale tariff plan. The three major US stock indices plummeted, marking their biggest single-day percentage losses in years. Following the overnight decline in US stocks, Asian-Pacific markets also opened lower and continued to trend downward.
US Stocks Market Highlights
On Thursday, US stocks experienced a dramatic sell-off, with the two major indices, the S&P 500 and Dow Jones, posting their largest daily declines in over four years. The S&P 500 fell into a correction zone, while the tech-heavy Nasdaq dropped nearly 6%, its largest one-day drop in five years.
Small-cap stocks also took a hit, with the Russell 2000 index falling 5%, reaching a one-year low, and entering a bear market with a 21% drop from its historical high on November 25 of last year.
For most individual stocks, it was the worst day since the pandemic began. Trump’s tariff plan caused a massive disruption to the global trade system, severely impacting companies that rely on imported goods. Nike’s stock fell 12%, Five Below dropped 29%, Dollar Tree declined 8%, and Gap plunged 22%.
The large-scale tariffs raised concerns about supply chain disruptions and rising costs, leading to a significant sell-off in tech stocks. All seven of the “tech giants” saw declines, with Microsoft suffering the smallest drop at around 2%. Apple fell 9.2%, marking its worst single-day performance in five years; Amazon dropped nearly 9%, its largest decline since April 2022; Meta fell 8.96%, Nvidia dropped 7.77%, Tesla declined 5.47%, and Google fell 4.02%. In total, the combined market value of these tech giants dropped by about $1 trillion, reaching its lowest level since early August 2024.
Popular Chinese stocks also took a hit, with many falling, including Taiwan Semiconductor, down 7.64%, Alibaba, down 0.35%, Pinduoduo, down 4.54%, NetEase, down 1.37%, JD.com, down 2.90%, Ctrip, down 3.74%, Baidu, down 2.34%, Li Auto, down 2.94%, and Tencent Music, down 1.04%.
US Market – Technical Analysis
US Market Performance
- Dow Jones: -1,679.39 points, -3.98%, closing at 40,545.93
- Nasdaq: -1,050.44 points, -5.97%, closing at 16,550.61
- S&P 500: -274.45 points, -4.84%, closing at 5,396.52
Asia-Pacific Stock Markets
In the wake of the sharp drop in US stocks overnight, Asian markets opened lower and continued their downward trajectory.
The Japanese market followed Wall Street’s decline, with the Nikkei 225 falling 2.6%, dipping below 34,000 points for the first time since August 7, 2024. The Topix index dropped 3.3%. Of the 33 industry sectors on the Tokyo Stock Exchange, only four did not decline, with the banking sector suffering the biggest loss, falling 6.4%.
Both the South Korean and Japanese stock markets opened lower, but while Japan continued to experience a steady decline, South Korea saw a rebound. The Seoul Composite Index recovered, erasing early losses of up to 1.5%.
Vietnam’s VN Index dropped 6.68%, marking its largest one-day decline since 2001.
The stock markets in China, Hong Kong, Taiwan, and Indonesia were closed for public holidays on Friday.
Asia Market – Technical Analysis
European Stock Markets
European markets also entered risk-off mode, reacting to the announcement of the US tariffs.
European Commission President Ursula von der Leyen stated that the US’s “reciprocal tariff” policy would severely impact the global economy and lead to further protectionism. The EU is preparing countermeasures.
European Market – Technical Analysis
European Market Performance
- Germany’s DAX 30: -670.18 points, -3.00%, closing at 21,704.92
- UK’s FTSE 100: -137.14 points, -1.59%, closing at 8,471.34
- France’s CAC 40: -259.85 points, -3.31%, closing at 7,598.98
- Europe’s Stoxx 50: -194.30 points, -3.66%, closing at 5,109.65
- Spain’s IBEX 35: -143.63 points, -1.08%, closing at 13,192.07
- Italy’s FTSE MIB: -1,380.20 points, -3.59%, closing at 37,074.00
Key Data to Watch Today:
The US March Non-Farm Payrolls report is due for release, with expectations of 135,000 new jobs added and an unemployment rate holding steady at 4.1%. Investors should pay close attention to this report. Additionally, US Federal Reserve Chairman Jerome Powell is scheduled to give a speech, which will be closely monitored by market participants.
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Disclaimer
This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it.
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