Live Updates: Nasdaq Composite Crashes Into Bear Market
Live Updates
Markets Still Down Big But Glimmers of Hope Emerge
As we approach noon, major indexes are down 3.5% to 5%.
That brings the two-day sell-off to between 6.5% to 12%, depending on the index, with the Dow Jones down the least and the Russell 2000 seeing the steepest fall.
Here’s where each major index stands near noon:
- Russell 2000: -4.67%
- Nasdaq Composite: -3.76%
- S&P 500: -3.83%
- Dow Jones Industrial Average: -3.42%
One ‘glimmer of hope’ was Trump posting on Truth Social that he was negotiating with the President of Vietnam. That posting was enough to send shares of companies like Nike with large supply chains in Vietnam skyrocketing.
Trump Doubling Down
On Truth Social Tump appears to be doubling down on tariffs today. He says “CHINA PLAYED IT WRONG, THEY PANICKED – THE ONE THING THEY CANNOT AFFORD TO DO!”
So far, Trump has paid little acknowledgement to the ongoing market sell-off following his tariffs aside from saying “MARKETS are going to BOOM…”
Opening Bell Update
The opening bell has been rung and here’s where we stand:
- Nasdaq Composite: Down 465.96 (-2.82%)
- S&P 500: Down 122.19 (-2.26%)
- Dow Jones: Down 984.03 (-2.43%)
The big question for the day is will we see the sell-off accelerate as traders flee to safety in front of the weekend or could there be a relief rally as the Nasdaq Composite is now in bear market territory?
Jobs Numbers are In
The big figure the market will initially watch is that unemployment is at 4.2% versus expectations of 4.1%.
However, nonfarm payrolls grew 228,000 versus expectations of 140,000. So on the margin, this wasn’t a bad jobs report.
We’ll see if these numbers are enough to mitigate some of today’s market losses.
Stocks to Watch Today
Here are a few key stocks to watch Friday morning:
- Apple: Down another 5% in premarket after dropping 9.25% yesterday. Apple faces significant pressure from Trump’s tariffs and retaliatory tariffs from China increase the potential this trade war is protracted and could impair Apple’s earnings for years to come.
- Boeing: Another stock that could be hit particularly hard by a trade war, Boeing shares are trading off by 4.65% after falling 10.7% yesterday.
Jobs Report at 8:30 a.m. ET
The jobs report is due for release at 8:30 a.m. ET. Obviously, tariffs are the main storyline that are driving markets today, but a poor jobs number could send stocks even further south as it would show the economy has begun dramatically slowing before the impacts of sweeping tariffs are felt.
Markets are in freefall once again on Friday morning. Here’s a look at futures as of April 4th:
- Dow Futures: -1,260 (-3.10%)
- S&P Futures: -169.75 (-3.12%)
- Nasdaq Futures:-619 (-3.33%)
Yesterday, the Russell 2000 became the first major index to enter bear market territory. However, if pre-market losses hold up, the Nasdaq Composite will also enter a bear market.
China Retaliates with 34% Tariffs
The main driver for this morning’s market collapse is China imposing 34% tariffs on all imported goods from the United States. That rate matches the reciprocal tariffs from the United States, although China had previously announced tariffs that put its total rate at 54%.
China’s announcement sent shockwaves through markets throughout the world as European indexes are now also trading sharply off. Prediction markets now have the probability of a recession in the U.S. in 2025 at 56%.
Market Now Pricing in 5 Rate Cuts
The market is now pricing in a 100% probability of a 1st and 2nd rate cut by July, and a 59% probability of a fifth rate cut by December. 2-Year Treasury yields are collapsing. The yield on 10-Year Treasuries now stands at 3.916%.
The challenge will be that while the Fed may need to respond to falling growth, if tariffs prove inflationary, that will limit the Fed’s options.
Eric Bleeker has been investing for more than 20 years. He began his career working at Microsoft before joining Motley Fool, one of the largest publishers of financial research. In his 15 years at Motley Fool Eric served as the General Manager for Fool.com and led coverage in the Technology & Telecom sector. In addition, he was a featured columnist and has hosted dozens of investing seminars attended by more than a million total investors. Eric has more than 1,000 financial bylines to his name and has been featured in The Wall Street Journal, CNBC, Fox Business, and many other leading publications. He is currently focused on artificial intelligence investing and is a CFA Charterholoder.
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