Live Updates S&P 500 (SPY): Market On a Wild Ride As President Trump Holds Tariff Line
By Joel South·
Updated Apr 7, 2:05pm ET ·
Published Apr 7, 11:03am ET
Live Updates
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Market Fear Doubled Since Last Week
The VIX, or CBOE Volatility Index, measures expected market volatility over the next 30 days, derived from S&P 500 option prices. Often called the “fear gauge,” it rises when investors anticipate larger market swings, typically during uncertainty or downturns, and falls when markets stabilize.
A higher VIX signals increased panic and a lower signal typically signifies confidence in the stock market. Over the past 5 trading days, the VIX has more than doubled, now resting at 46 (102% increase since April 3rd), a level not seen since the early days of the Covid 19 lockdown.
Chart Source: YCharts
Wall Street Downgrades
General Motors (GM) has been downgraded by Bernstein from Market Perform to Underperform, with the price target reduced from $50 to $35. According to the analyst’s research note to investors, vehicle tariffs have already begun, and parts tariffs are expected to start within the next month. Bernstein’s revised forecast for GM indicates a drop of over 20% in free cash flow and a decline exceeding 50% in adjusted earnings for 2026. The firm argues that GM shares will continue to face pressure as tariff challenges mount and consumer confidence weakens.
UBS analyst Joshua Spector has downgraded LyondellBasell (LYB) from Neutral to Sell, lowering the price target from $76 to $51. In a research note to investors, the analyst highlights that although demand has been sluggish for almost two years, the company’s earnings are now increasingly strained by rising costs and a persistent influx of new global supply. UBS views the polyethylene and polypropylene markets as among the most oversupplied within its coverage, a situation that could take years to stabilize, according to the firm.
Caterpillar (CAT) has been downgraded by UBS from Neutral to Sell, with its price target cut from $385 to $243. The analyst, in a note to investors, suggests that the market has not yet fully accounted for additional earnings risks tied to macroeconomic challenges. UBS predicts that tariffs and ongoing uncertainty will further weaken various sectors of the U.S. and global economy, negatively impacting economically sensitive areas of Caterpillar’s business, such as certain construction segments, oil and gas, and mining.
Delta Air Lines (DAL) has been downgraded by UBS from Buy to Neutral, with the price target slashed from $77 to $42. The firm points to a deteriorating economic environment and growing signs of a potential recession as reasons for the downgrade. In its note to investors, UBS expresses doubt that Delta can avoid the significant cyclical downturn typically seen during an economic slump, noting that the combination of a weaker economic outlook and rising tariffs is likely to hurt both international and premium travel segments, posing a notable risk to the airline.
Wells Fargo has reduced its price target for Airbnb (ABNB) from $134 to $100 while maintaining an Underweight rating on the stock. Although alternative accommodations have not yet been tested in a “typical” economic cycle, the firm believes their lower global penetration compared to hotels could lead to slightly better performance for alternatives. Nonetheless, Wells Fargo is lowering its estimates for the company.
President Trump Eyes More Tariffs on China
President Trump is again threatening to slap a 50% tariff increase on China starting Wednesday if they do not drop their 34% retaliatory tariffs on the United States by tomorrow.
He’s accusing China of unfair trade practices like currency manipulation and subsidies.
The S&P 500 is down .51% as of 11:25 am.
$5.5 Trillion Dollar Swing
Joel South
Whispers surfaced that the White House might be eyeing a “90-day tariff pause,” but CNBC reporting no White House officials were aware of such a plan. The S&P 500 tanked, sliding back to 5000 by 10:45 am. The total swing was $5.5 trillion dollars over a 30 minute time span.
This rollercoaster ties to last week’s $6.6 trillion S&P 500 loss after Trump’s tariffs hit. Investors are hypersensitive—any tariff hint moves mountains. Stay tuned; this could shift again with the next headline.
Live coverage has ended. The full story is below.
Full Coverage
The story so far
U.S. markets are a wild ride, reeling from President Trump’s tariff stubbornness. The S&P 500 (SPY) hit bear territory—down 20% from its peak—before clawing back to 5214, before swinging lower, yet again with traders asking if it’s “Black Monday” 2.0—think 1987’s 22.6% crash.
President Trump’s Sunday take—“sometimes you have to take medicine”—isn’t calming anyone. The VIX “fear gauge” is jumping, currently sitting just below 50 and global markets are tanking: Hong Kong’s index crashed 13%, Shanghai and Tokyo lost 10%, Europe’s Stoxx 600 shed 4%. Crude oil’s at $66.73, reflecting trade war jitters.
This chaos follows last week’s $6.6 trillion S&P 500 wipeout after Trump’s tariffs—10% on the UK, steeper on others—hit harder than expected. China’s 34% retaliatory duties didn’t help. A year ago, the S&P 500 was at 501.98; now, it’s down 14% year-to-date from 594.18 in February. Experts like JPMorgan’s Jamie Dimon warn of growth risks, while Bill Ackman pushes for a delay. With the index teetering, any whisper of tariff suspensions or further escalations of tariff wars will magnify the movement of broad markets.
Joel South covers large-cap stocks, dividend investing, and major market trends, with a focus on earnings analysis, valuation, and turning complex data into actionable insights for investors.
He brings more than 15 years of experience as an investor and financial journalist, including 12 years at The Motley Fool, where he served as an investment analyst, Bureau Chief, and later led the Fool.com investing news desk. He has also co-hosted an investing podcast and appeared across TV and radio discussing market trends.
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