Daily Summary: Tariff Turmoil Sends Markets Into Volatile Trading

US indices experienced wild swings with the US500 plummeting 4.7% after open before surging 3.4% and then retreating again to -0.01, now down nearly 20% from its record high. The US30 is down 0.83%, while the US100 gains 0.45% after similarly extreme price action.

The VIX "fear gauge" spiked to 34, its highest level since August, as traders rushed to hedge against further volatility. The index, which has jumped 14.82 points, reflects panic levels not seen since the COVID-19 crisis.

Trump threatened additional 50% tariffs on China if Beijing doesn't withdraw its 34% retaliatory levies by April 8th. This would come on top of the baseline 10% tariff and 20% fentanyl-related levy, potentially raising total duties on Chinese imports to over 100%.

Wall Street strategists are rapidly cutting forecasts, with JPMorgan slashing its S&P 500 year-end target from 6,500 to 5,200 and Oppenheimer reducing outlook from 7,100 to 5,950. Major firms including Goldman Sachs, Evercore ISI, and Barclays have similarly lowered expectations.

BlackRock CEO Larry Fink warned markets could fall another 20%, stating the economy is "probably already in a recession" while noting stronger inflationary pressures than markets expect. However, he views the declines as "more of a buying opportunity than a selling opportunity" long-term.

Oil prices continued sliding, with WTI briefly dipping below $60 per barrel for the first time since 2021. Crude fell approximately 2% amid global growth concerns and Saudi Arabia's decision to cut export prices to Asian buyers by $2.30 per barrel.

Japan and Israel negotiations underway with Trump announcing "tough but fair parameters" for Cabinet-level talks with Japan over the planned 24% duties, while discussions with Israel are set to begin despite the country already removing tariffs on US goods.

Harvard University is seeking $750 million in bonds amid mounting threats to federal funding from the Trump administration. The school faces potential losses of up to $9 billion in grants and contracts unless it complies with federal demands related to antisemitism allegations.

The European Union is finalizing retaliatory measures with countermeasures targeting US imports worth less than €26 billion. EU Trade Commissioner Maros Sefcovic stated they're "finalizing the list tonight" after carefully considering member states' concerns.

Bitcoin fell to $74,500 before recovering slightly to $78,500, down 0.3%. If April closes at current levels, Bitcoin would record its third consecutive month of declines, while Ethereum has already lost 65% of its capitalization since its December peak.

Shell cut its gas production outlook for Q1, now expecting 910,000-950,000 barrels of oil equivalent per day, down from previous estimates of 930,000-990,000 barrels. The reduction is attributed to adverse weather and unplanned maintenance in Australia.

Hedge funds executed their largest-ever one-day net sales of global equities after Trump's tariff announcement, according to Goldman Sachs' prime brokerage desk. Retail investors remain the last group that has yet to sell US equities.

Turkey eyes potential silver lining in the tariff war as it faces a relatively lower 10% baseline tariff compared to other nations. Officials suggest this may attract companies from higher-tariff countries looking to relocate production to access US markets.