Newscasts - Trump tariff tailspin worsens, Nasdaq confirms in bear market

Ameriprise Financial

04/04/2025 23:30

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Source: 'Reuters - Business videos'

Description: Wall Street nosedived for a second straight day on Friday, confirming the Nasdaq Composite was in a bear market and the Dow Jones Industrial Average was in a correction, as an escalating global trade war spurred the biggest losses since the pandemic. Alex Cohen has more.

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Video Transcript:

US stocks plunged for the second straight day Friday in reaction to President Donald Trump's tariffs with the Dow losing 5.5%, and the S&P 500 and NASDAQ dropping about 6% each. The NASDAQ is now in a bear market having fallen more than 20% from its recent peak. The escalating trade war spurred the biggest losses since the pandemic and stoked fears of a global recession. Since late on Wednesday, when Trump boosted tariff barriers to their highest level in more than a century, investors have dumped stocks, fearing both the new US economic reality and also how US trading partners might retaliate by steepening their own trade barriers. Private financial advisor with Ameriprise Financial calls the reaction "justified".

We have a market that is throwing a temper tantrum frankly rightly, probably rightfully so. When you think about what the Street was expecting in terms of a more temperate approach and a tempered narrative to tariffs and trade in general. And then just what we what we've seen and how not just how cavalier the numbers seem, but also how cavalier the messaging is. So, we have a market that is absolutely selling off on that due to uncertainty, due to distaste for the proposed policy and that happened yesterday that carried over to today.

All of the Magnificent Seven technology stocks fell as did all 11 S&P sectors, with energy the leading laggard for the second straight day, as companies tracked a 7.3% decline in US crude prices. Federal Reserve Chair Jerome Powell spoke publicly for the first time since Trump's tariff announcement. He highlighted that the unexpectedly hefty tariffs could trigger higher inflation and slower growth, setting the stage for challenging decisions for US central bankers. Traders still anticipated a more accommodative Fed policy, with money market futures pricing in cumulative rate cuts of 1 percentage point by the end of 2025, compared with about 0.75 percentage point a week earlier.