Midday Market Roundup for April 4, 2025

Hello, everyone. As of midday, let's examine the top four financial and global economic news stories for April 4, 2025.

Global Markets Plunge as China Retaliates Against U.S. Tariffs

Global stock markets are in turmoil after China announced sweeping retaliatory tariffs of 34% on all U.S. goods, escalating the trade war sparked by President Donald Trump's recent tariff measures. The Dow Jones Industrial Average has dropped 1,630 points (4%), while the Nasdaq Composite is down 4.7%, pushing it into bear market territory. Michael Arone, Chief Investment Strategist at State Street Global Advisors, described the market reaction as "sell first, ask questions later," with investors fleeing riskier assets amid fears of a global recession. European and Asian markets also saw significant declines, with Germany's DAX falling 3% and Japan's Nikkei 225 dropping 2.8%.

Gold Prices Surge to Record Highs as Safe-Haven Demand Increases

Amid rising uncertainty, gold prices have soared to a record high of $3,160 per ounce as investors seek refuge from escalating trade tensions and market volatility. Analysts at Goldman Sachs upgraded their gold price forecast, citing robust demand from central banks and exchange-traded funds (ETFs). Chief Investment Strategist at Sanctuary Wealth, Mary Bartels, noted that "gold's rally reflects heightened investor anxiety about stagflation and recession risks." Meanwhile, oil prices have declined sharply, with U.S. crude falling below $62 per barrel.

U.S. Job Growth Slows in March Amid Economic Uncertainty

According to the Labor Department's report released today, the U.S. labor market slowed in March, with employers adding 140,000 jobs compared to February's gain of 151,000. The unemployment rate held steady at 4.1%. Economists at Dow Jones Newswires attributed the slowdown to rising costs driven by tariffs and uncertainty surrounding economic policies. Layoffs in sectors heavily reliant on international trade have also increased as businesses grapple with higher input costs.

Tech Stocks Lead Market Declines Amid Trade War Fears

Technology stocks are among the hardest hit by the ongoing trade war. Apple shares fell 5%, while Nvidia and Qualcomm dropped 6% and 4%, respectively. The tech-heavy Nasdaq Composite has entered bear market territory, down more than 20% from its recent peak. Hetts Janus, Global Head of Multi-Asset at Janus Henderson Investors, emphasized that "the tech sector is particularly vulnerable to supply chain disruptions caused by escalating tariffs." Analysts warn that prolonged trade tensions could further erode investor confidence in the tech sector.

In summary, today's financial landscape is marked by heightened volatility and uncertainty as escalating tariffs fuel fears of a global recession. Investors are turning to safe-haven assets like gold while grappling with slowing job growth and significant declines in key sectors such as technology.

Sources:

• Michael Arone, Chief Investment Strategist at State Street Global Advisors, on global market reactions.

• Goldman Sachs, on gold price forecasts and safe-haven demand.

• Dow Jones Newswires, on U.S. labor market trends.

• Hetts Janus, Global Head of Multi-Asset at Janus Henderson Investors, on tech sector vulnerabilities.

SEC-Compliant Disclosure:

This article provides general information about current financial and global economic news. It is not intended to be personalized investment advice or a solicitation to buy or sell securities. The information herein is based on publicly available data and should not be considered investment recommendations.

Important Disclosures:

1. No Compensation Received: No compensation was received from any individual or entity for the preparation or publication of this article.

2. No Client Relationship: The author has no client relationship with any individuals or entities mentioned in this article.

3. No Conflicts of Interest: No known conflicts of interest exist between the author and any individuals or entities mentioned in this article.

4. General Information Only: This article is for informational purposes only and should not be relied upon for making investment decisions. Readers are advised to consult a financial advisor before making investment decisions.

5. No Endorsements: Including any names or sources in this article does not constitute an endorsement of their views or opinions.

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the opinions of any organization or individual mentioned. The information provided is subject to change and may not reflect the current market situation.

Individual HTTP URLs for Stories:

• Michael Arone on Global Market Reactions

https://www.cnn.com/2025/04/04/investing/stock-market-dow-tariffs/index.html

• Goldman Sachs on Gold Price Forecasts

https://www.reuters.com/markets/global-markets-wrapup-1pix-2025-04-04/

• Dow Jones Newswires on U.S. Labor Market Trends

https://www.investopedia.com/5-things-to-know-before-the-stock-market-opens-april-4-2025-11709018

• Hetts Janus on Tech Sector Vulnerabilities

https://www.wsj.com/livecoverage/stock-market-tariffs-trade-war-04-04-2025

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