Monday Afternoon Coffee - Markets Update - 7 Apr 2025 - Wall Street Swings as Trump Doubles Down on Tariffs; Gold Drops, Oil Near 4-Year Low

Markets Update: Wall Street experienced another turbulent session on Monday as President Donald Trump intensified his tariff campaign, unsettling global markets and triggering new recession concerns. Investors moved towards safe-haven assets and significantly altered rate expectations, with U.S. stocks finishing mixed after a dramatic recovery during the day.

Global Markets Roundup: 7 Apr 2025

Trump announced a new 50% tariff on Chinese goods unless Beijing retracts its retaliatory actions. He also dismissed reports of a possible 90-day tariff pause for countries other than China, labeling them as "fake news"—a denial that wiped out brief gains in equity markets.

The Dow dropped by 0.21%, while the S&P 500 and Nasdaq rose by 0.59% and 1.07%, respectively, as tech stocks that had been under pressure rebounded late in the session. The S&P 500 experienced a massive 400-point intraday range, nearly confirming a bear market at the open before recovering.

Market Snapshot

Dow Jones: -82.24 pts (-0.21%) to 38,232.62
S&P 500: +28.04 pts (+0.59%) to 5,104.20
Nasdaq: +166.96 pts (+1.07%) to 15,754.75

Tariffs Fuel Recession Bets, Fed Rate Cuts Eyed

Traders moved to price in almost five quarter-point Fed cuts this year, with the first expected as soon as May, as tariff-driven inflation and growth concerns mount. Bond yields surged on the day:

10-year Treasury yield (US10Y): +17.7 bps to 4.168%
2-year yield (US2YT): +7.4 bps to 3.744%

Global Selloff Deepens

The MSCI All-Country World Index dropped 1.87%, with European and Asian markets bearing the brunt.

STOXX 600: -4.5%, lowest since Jan. 2024
Hang Seng (HSI): -13%, worst one-day drop since 1997
China’s CSI 300: -7%, rescued only after state-backed Central Huijin stepped in as a buyer

European Commission President Ursula von der Leyen reiterated the EU’s readiness to negotiate—but also warned of potential countermeasures.

Currency and Commodity Moves

The dollar rallied, buoyed by safe-haven flows:

Dollar index DXY: +0.6% to 103.21
Euro EURUSD: -0.08% to $1.0946
Yen USDJPY: +0.74% to 147.96

Gold prices retreated as the dollar strengthened:

Spot gold: -2.31% to $2,967.17/oz

Oil prices fell sharply amid growth fears, nearing 2021 lows:

WTI crude (CL1!): -1.16% to $61.27/barrel
Brent (BRN1!): -1.24% to $64.77/barrel

Agriculture and Soft Commodities

Cocoa sold off hard for a second straight session amid risk aversion and improving supply prospects:

ICE NY cocoa (CCK25): -5.39%
ICE London cocoa #7 (CAK25): -5.87%

Cotton futures were higher by 150 to 185 points, while:

Soybeans (ZS1!): +5¼¢ to $9.82¼/bushel
Corn (ZC1!): +3½¢ to $4.63¾/bushel
Wheat (ZW1!): +6½¢ to $5.35½/bushel

Despite the rebound, U.S. stocks have lost $5 trillion in market value since Trump’s tariff barrage began last Wednesday. Markets now await Friday’s U.S. payrolls report and comments from Fed Chair Jerome Powell for clues on the central bank’s response.

Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team