U.S. Stock Market Summary for Friday, April 4, 2025

 

Major Indices:

  • S&P 500: Fell 6% (−322.44 points) to 5,074.08

  • Dow Jones Industrial Average: Dropped 5.5% (−2,231.07 points) to 38,314.86

  • Nasdaq 100: Slid 6.07% (−1,123.78 points) to 17,397.69

  • Russell 2000: Decreased 4.4% (−83.51 points) to 1,827.03


Market Overview:
U.S. stock markets plunged on Friday, capping one of the worst trading sessions since the 2020 pandemic crash. The sharp downturn was driven by mounting global trade tensions after China announced retaliatory tariffs in response to President Donald Trump's recent tariff hikes. Market fears over a potential recession intensified, despite strong labor market data. Federal Reserve Chair Jerome Powell added to concerns by cautioning that tariffs may worsen inflationary pressures, further rattling investor sentiment.

Sector Highlights:
Technology stocks led the decline, with Apple tumbling 7.29%, dragging its market capitalization below the $3 trillion mark. Nvidia sank 7.36% to $94.31, while Tesla plummeted 10.42% to $239.43 amid weakening sales and rising political risk surrounding CEO Elon Musk. Other tech giants followed suit: Microsoft (−3.56%), Amazon (−4.15%), Alphabet (−3.2%), and Meta (−5.06%). The broader "Magnificent Seven" cohort entered bear market territory, down over 20% from recent highs. Even defensive names like Berkshire Hathaway (−6.83%) and Walmart (−4.76%) couldn't escape the sell-off. Visa also dropped sharply, losing 7.9%.

Economic Snapshot:

  • Nonfarm Payrolls: Rose by 228,000 in March, beating forecasts of 144,000

  • Unemployment Rate: Unchanged at 4.1%

  • Inflation Rate: Accelerated to 2.9% from 2.7% the previous month

Expert Commentary:
Goldman Sachs Asset Management noted that while institutional and high-net-worth investors have not fully exited U.S. equities, concerns over stagflation—marked by rising inflation and stagnant growth—are mounting. The firm emphasized that ongoing volatility and policy uncertainty could test investor resolve in the near term.

Government & Political Notes:
Global political fallout from the trade war continues to build. The EU's trade commissioner criticized the U.S. tariffs as "damaging and unjustified," hinting at possible retaliatory measures. Meanwhile, bipartisan voices in Congress are pushing to curtail presidential authority over trade policy, reflecting rising domestic unease over the escalating tariff conflict.

Conclusion:
Wall Street ended the week with a deep sell-off as global trade tensions and inflation fears rattled markets. Despite encouraging employment data, investors remain wary of a prolonged trade war’s economic fallout. Continued volatility is expected as markets weigh geopolitical developments and await further policy responses from Washington and the Federal Reserve.

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