Daily Summary: Stocks Resume Decline as Trade War Fears Outweigh Cooling Inflation Data

US indices extended losses as the S&P 500 fell 1.4%, Nasdaq 100 slid 2%, and Dow Jones Industrial Average dropped 1.3%, with the benchmark S&P 500 now approaching a 10% correction from its February peak after shedding approximately $5 trillion in value.

Trump's escalation of trade tensions, including threats of 200% tariffs on European alcoholic beverages and confirmation of April 2 reciprocal tariffs, overshadowed encouraging inflation data showing February's producer prices came in cooler than expected.

Fed recession probability model sits at 29.76%, just shy of the 30% threshold that historically signals a downturn, while investor bearish sentiment remains at extreme levels not seen since March 2009, according to AAII polling.

Intel shares surged over 13% after appointing industry veteran Lip-Bu Tan as its new CEO, while Adobe plummeted more than 13% on disappointing guidance despite beating quarterly expectations.

Gold continued its record-setting rally, climbing 1.5% to $2,978.92 per ounce with Macquarie forecasting a rise to $3,500 by Q3, as investors seek safe havens amid global uncertainty.

Treasury yields eased with the 10-year dropping 3 basis points to 4.28%, while crude oil fell 1.6% to $66.58 per barrel, remaining near three-year lows.

Reports emerged that Trump family representatives held discussions about potentially investing in Binance's US operations through World Liberty Financial, adding to the president's growing cryptocurrency interests.

European markets declined with Germany's DAX falling 0.7% and France's CAC 40 sliding 0.8% in response to the escalating tariff dispute, while natural gas futures initially plunged on Putin's suggestion of potential energy cooperation with the US.

Former Treasury Secretary Steven Mnuchin downplayed recession risks, characterizing the current 5-10% market selloff as a "natural correction" in an overvalued market rather than a sign of economic trouble.

Trump's special envoy Steve Witkoff is reportedly in "serious discussions" with Russia about ending the Ukraine war, while domestically a government shutdown looms as Democrats and Republicans remain at odds over funding.

The cryptocurrency market is also overwhelmed by the border market sentiment. Bitcoin declines to 80700 USD or by 3.45%. Moreover, earlier recording even steeper declines below 80000 USD level. 

Ethereum remains weak comparing to other major cryptocurrencies. The second-largest crypto project records a 3.00% decline to 1850 USD, which is almost 55% lower than the local peak in December 2024.