Daily summary: Equities and commodities drown in red, while USD and crypto rebound (04.04.2025)

The sell-off provoked by retaliatory tariffs shows no signs of slowing down, and U.S. indices have dropped to levels not seen since the mini-crash of August 2024. The S&P500 has experienced its worst two-day run since March 2020 (-5.4%), while the Nasdaq (-5%), DJIA (-4.3%), and Russell 2000 (-5.7%) have also lost ground.

European markets are also ending the week deep in the red. The German DAX has dropped by -4.95%, the French CAC40 by -4.25%, and the British FTSE 100 by -4.95%.

China, without attempting negotiations, announced retaliatory tariffs of 34% on all U.S. products, effective April 10. According to Trump, "The Chinese played it wrong, they panicked."

The escalation of the trade war between China and the U.S. has worsened the declines in technology stocks (NVDA.US: -7%, TSLA.US: -9%, AAPL.US: -5.6%) and major financial institutions (JPM.US: -6.9%, GS.US: -6.7%, BAC.US: -7.5%).

The consequences of the tariffs will be greater than previously expected, raising the risk of higher inflation and weaker economic growth, as signaled by Jerome Powell during a press conference in Virginia. However, Powell emphasized that changes in monetary policy require more clarity from economic data, and the Fed will continue with 'wait and see' approach.

Donald Trump extended the period for negotiating the potential sale of TikTok to U.S. entities by 75 days. The U.S. president previously suggested that the sale could be used as a bargaining chip for tariff reductions with China.

The change in non-farm payrolls (NFP) in March exceeded expectations (228k, forecast: 140k). However, the data carries mixed implications due to a large revision of the previous reading downward (from 151k to 117k). Unemployment rose as expected from 6.6% to 6.7%.

On the forex market, the dollar (USDIDX) is recovering from its recent selloff, strengthening by 1% against the G10 currency basket. The most depreciated currencies are those from the Antipodes (AUDUSD: -4.7%, NZDUSD: -3.64%) and the Norwegian krone (USDNOK: +4.11%). The Swiss franc (USDCHF: +0.05%) resists the declines the most, while USDJPY and USDCAD lose around 0.8%. The euro has depreciated 0.9% against the dollar (EURUSD: 1.095).

The broad commodity market is also retreating. Gold has lost 2.9% to $3,023 per ounce, silver is down 7.2% to $29.60 per ounce. Brent and WTI crude oil have dropped another 6.4% and 7.3%, respectively, and NATGAS contracts are trading 7% lower.

Key cryptocurrencies are experiencing small rebounds. Bitcoin has gained 2.65% to $84,500, and Ethereum has increased by 1.3% to $1,822.