4E: Aggressive Tariff Policy Deals Heavy Blow to US Stock and Crypto Markets, Escalating Global Economic Recession Concerns

On April 4th, according to 4E Monitoring, Trump's tariff plan, which is far more aggressive than what the market expected, has aroused strong concerns among investors regarding the full outbreak of a trade war and the subsequent economic recession. On Thursday, all three major U.S. stock indexes witnessed a sharp decline. The Nasdaq plummeted by 5.97%, marking the largest single-day drop since March 2020. The S&P 500 fell by 4.84%, and the Dow dropped by 3.98%, both representing the largest single-day drops since June 2020. Large-cap tech stocks experienced a significant decline as tariffs are anticipated to have an impact on the supply chain. Apple plummeted by over 9%. The "Manificant 7," the seven tech giants, saw a one-day evaporation of approximately $1 trillion in market value, and the total market capitalization fell to its lowest level since early August of the previous year. The crypto market witnessed a broad decline. Bitcoin dropped below nearly $81,000 from its high of $88,000 before the tariff announcement. Although the decline was substantial, it remained relatively resilient compared to tech stocks. The overall crypto market capitalization decreased by nearly 8%, and the Crypto Fear and Greed Index, which had partially recovered in March, once again fell back into the "extreme fear" zone. The foreign exchange and commodities markets were also affected. The U.S. dollar index fell by 1.61% to its lowest level since October 2024, erasing all the gains since Trump's election. The outlook of slowing global economic growth led to a nearly 7% plunge in oil prices, marking the largest single-day drop since July 2022. Meanwhile, the spot gold price fluctuated narrowly and remained basically flat compared to the previous trading day. Trump's tariffs led to a bloodbath in the financial markets. The March non-farm payroll report is scheduled to be released tonight. Before the potential impact of import tariffs on the data, the labor market is expected to remain stable. The market is closely monitoring Powell's speech. According to the CME Group's FedWatch Tool, traders' pessimism about the U.S. economic outlook has significantly increased the probability of the Federal Reserve implementing an emergency rate cut. The number of rate cuts expected this year has increased from two a month ago to four. eeee.com, as a financial trading platform supporting assets such as cryptocurrencies, stock indices, bulk gold, and foreign exchange, recently launched a USDT stablecoin wealth management product with an annualized return rate of 8%, providing investors with a potential hedging option. 4E reminds you to be cautious about market volatility and allocate your assets reasonably.