This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
We have two live blogs this morning:
The first blog is following general market movements while the second focuses on Magnificent 7 stocks.
Selling is intense at the open with the Nasdaq down 4.5%, the S&P 500 down 4.2%, and the Dow Jones down 4.2%.
The S&P 500 is now in bear market territory.
This live blog has concluded, but we’ve created a new live blog to track the market’s biggest news on April 7th. Follow this link to access our newest live blog that’s covering the market on Monday morning.
Japan’s stock market is open and the Nikkei 225 is falling fast, down 7.5%. Financials and semiconductors are leading losses as investors bet against companies with cyclical exposure.
As of 7:40 ET, here’s an updated look at futures:
Markets continue improving, with S&P 500 Futures down 3.9%. There is a good chance we could be past peak panic now, although markets will see significant movement tomorrow morning.
S&P 500 futures have moderated back to about a 4.2% decline, which is below the peak decline seen earlier. We’ll see if we’ve past peak selling.
I know you’re probably not looking for sunshine and rainbows on a live blog about market futures crashing another 5% after one of the worst two-day trading stretches in market history.
Yet, 24/7 Wall Street was founded on the fundamental principle that the stock market is the best wealth-building tool accessible to most investors over the long run. So, we must provide some context beyond the headlines about the current market drop.
So, we should note that after the biggest two-day declines since 1950, every time the market has dropped 9% or more across two days it returned more than 100% across the next five days.
I will personally be looking to put some cash to work in tomorrow’s market. There could be more down days ahead, but I like my odds of making money across the coming years from the prices we could see tomorrow morning.
As if the stock declines weren’t bad enough, there are other assets to watch after-hours. We already discussed how crypto prices crashed which signaled how ugly the futures open would be, but another market to watch is commodities.
For example, copper futures are absolutely plummeting right now. As Bloomberg’s Joe Weisenthal notes, if investors expected an industrial bailout we wouldn’t see these futures off 8%. It’s just another sign the market is pricing in a protracted trade war.
The worst of Covid saw an 18% crash in 13 business days, we’re now approaching close to that number with S&P futures implying more than a 15% drop in three trading days.
Historic.
We have now passed a 5% decline in S&P 500 futures. This is truly panic selling. The question is, does this hold into tomorrow or will there be a relief rally?
As a reminder where circuit breakers hit, here’s what we’re looking at tomorrow:
Level 1 (7% decline): Halts trading for 15 minutes if the S&P 500 falls 7% before 3:25 p.m. ET.
Level 2 (13% decline): Halts trading for 15 minutes if the S&P 500 falls 13% before 3:25 p.m. ET.
Level 3 (20% decline): Halts trading for the remainder of the day if the S&P 500 falls 20%.
S&P 500 futures are now down more than 3.8% while Nasdaq futures are down 5%. If this holds it would be a third straight day of historic selling.
Ready for the updated returns (including futures market action) since the announcement of ‘Liberation Day’ tariffs?
Here are the grizzly numbers:
Stock market futures just opened and the headline is the S&P 500 is down 2.6%. This is a developing situation that we will continue updating.
Futures open in less than five minutes. We’ll be updating this blog with live reactions. So if you’re on this page, you can manually refresh as we expect a series of updates and reactions from the futures open.
Here’s a sign tonight could be brutal, there are multiple reports that Wall Street firms are staffing up for tonight’s futures open and are prepared for ‘intense selling.’
Live coverage has ended. The full story is below.
On Thursday following Trump’s tariff announcement the S&P 500 fell 4.88%, almost identical to its drop the day the market opened after 9/11. Then Friday was even worse. Between the two days, the market dropped 10.5%.
The Nasdaq Composite is now in a bear market, and the Russell 2000 is down nearly 25% from recent highs.
So, you can see why the market is on edge as Futures Markets open in less than an hour at 6 p.m. ET. We will be updating this blog live with market reactions as futures open.
One ominous sign before futures markets open at 6 p.m. ET is price action in crypto markets today. Bitcoin (CRYPTO: BTC) was trading at north of $82,600 shortly before noon, but began a massive nose dive that lasted until about 3 p.m. ET. Bitcoin is now trading for less than $79,000 per Bitcoin. Does the timing of this sell-off have anything to do with traders wanting to get out of crypto assets before market futures open?
Friday’s sell-off was triggered by China playing a ‘Reverse’ Uno card and issuing 34% tariffs back on the United States. That action signaled that most countries would begin a trade war rather than attempting to negotiate with the Trump Administration. As you can imagine, a global trade war is worse for the global economy than alternative scenarios like negotiating free trade blocks.
Trump officials said this weekend that over 50 countries have reached out wanting to negotiate. One notable country is Taiwan, which over the weekend said they’d prefer negotiations to punitive tariffs. If Trump were to announce some window of no reciprocal tariffs for negotiating countries we could see a major bounce in equity markets across the world.
Contact [email protected] for any questions or corrections.
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.
Yesterday saw one of the most dramatic surges in stock market history. After most indexes opened the day down, a 1:18 p.m. ET post by Donald Trump on Truth Social sent stocks soaring. Eventually,…
After weeks of market selling on fears that Donald Trump’s tariff proposals would push the United States economy into a recession, the Administration announced their tariff policies in an event branded ‘Liberation Day.’ The…
It’s another day of massive selling hitting Wall Street. Last night we hosted a live blog as futures opened for the Nasdaq Composite and other indexes. Futures quickly dove near circuit breaker levels. S&P…
Cons Liberation Day has come and gone and the markets do not like Trump’s sweeping reciprocal tariff plans. You can read our live blog where we covered the tariff announcements and market reaction from last night,…
Could today finally see a much-needed stock market rally? Futures of major indexes are up big shortly before 8 a.m. ET this morning: Dow Jones Futures: Up 1,011 (+2.64%) S&P Futures: Up 111.25 (+2.18%)…
Wednesday saw the third-highest one-day gain since World War 2. Taking a look at indexes, you’d expect Wednesday’s performance to be a good market year rather than day! Nasdaq Composite: +1,857.06 (12.16%) S&P 500: +474.13 (9.52%) Dow Jones: +2,962.86 (+7.87%)…
Monday morning is shaping up to be another dreary market day, but the pain won’t be evenly felt amongst Magnificent 7 stocks. Here’s where each stock stands in premarket trading: NVIDIA (Nasdaq: NVDA): Down 4.89%…
Ready for more whiplash? Last week, we saw a 90-day pause on reciprocal tariffs that saw the Nasdaq Composite soar 12.16% on Wednesday Then late Friday night, new guidance was issued that exempted broad…
Tuesday started out as a winning day across Wall Street with the Nasdaq Composite rising as much as 4.6% in early trading. However, momentum has faltered and the Nasdaq is now negative in late trading. EV…
