US OPEN: Selloff continues on mixed jobs data and China's retaliation (04.04.2025)

• Tariff-driven selloff accelerates on slashed growth forecasts

• China’s retaliation weighs on tech, finance and consumer stocks

• Better than expected NFP caps rate cut expectations

The market selloff sees no sign of ending as trade war intensifies with China imposing a symmetric 34% retaliatory tariff on all U.S. products coming into the country without any negotiation attempt. Dow Jones trims 3%, S&P500 and Nasdaq dip 3.5%, while Russell 2000 takes the biggest hit, falling 4.2%

Big Techs extend losses (NVDA.US: -6.1%, AVGO.US: -7.1%, TSLA.US: -7.6%, AAPL.US: -3.4%), as they rely heavily on external manufacturing and demand. Financial institutions see an unprecedented dive due to trade war genrating worries about growth and economic activity in months to come (JPM.US: -7.5%, GS.US: -8.5%). Chinese stocks are not spared either (BABA.US: -10%).

The mixed signals pile up in the context of monetary policy, with the most recent jobs report being difficulty digested by the investors who were recently betting on accelerated interest rates cuts. The NFP came in higher than expected (228k vs 140k), underlining the upside risks to inflation. Worth noting that the February reading has been revised down from 150k to 117k, making it even more challenging to separate the noise from the trend in the job market. We are still ahead of Jerome Powell’s speech, but there’s no confidence whether the Fed's Chair will tap into recessionary worries more than into the inflationary ones.

Friday selloff. Source: xStation5

US100 (D1)

The contract for Nasdaq 100 dipped to the lows known from the August 2024 selloff. The Mag7 stocks weigh significantly on the index, as China’s retaliatory tariffs spark even more worries around the tech sector that relies either on Asian demand or Asia-based production. The contract bounced back over 18 000 after hitting the 6-months low and entering the oversold zone (RSI < 30). 

Source: xStation5

Corporate news:

• Apple (AAPL.US) tumbles 3.6% on China (~50%) and Taiwan (~20%) tariffs likely inflating iPhone prices and hindering the company's supply chain, given the core production located in the region. iPhone prices could triple, crushing consumer demand and stalling the AI and electronics trade.

• DuPont (DD.US) falls 15% despite the launch of the Liveo Pharma TPE Ultra-Low Temp Tubing, a new product for biopharmaceutical processing, as China’s top market regulator has launched an anti-monopoly investigation into DuPont China Group. The probe comes amid rising tensions between the U.S. and China, following the recent imposition of tariffs by the U.S. under President Trump's executive order.

• Tesla (TSLA.US) falls almost 9% as analysts cite “unprecedented brand damage” tied to Elon Musk’s polarizing political activity.

• Sangamo Therapeutics (SGMO.US) loses 0.4% despite the fact that Eli Lilly secured exclusive rights to Sangamo’s STAC-BBB capsid for up to five neurological targets. The deal includes $18M upfront, up to $1.4B in milestones, and royalties. The technology shows strong blood-brain barrier penetration; Lilly will handle all R&D and commercialization.