China’s retaliation taxpayer made the main indicators at Wall Street 3% right after opening a 4/4 session.
The DJIA index currently decreased by 1,130 points, equivalent to 2.8%. S&P 500 takes 3.2%. Nasdaq Composite plummeted with 3.5%, as many technology companies in this index were large in China.
The Nasdaq Composite is approaching the market price, when it has been reduced by nearly 20% compared to the peak of December. The S&P 500 index also falls into the same situation, when it has decreased by 15% from the peak.
The market plummeted the second consecutive session after China announced that the import tax was added 34% to goods from the US, in order to retaliate the reciprocal tax that President Donald Trump made 2 days ago. Investors are worried about escalating trade tensions, causing high American inflation and falling into a recession.
All three key indicators of the US Securities plummeted at the opening of the 4/4 session. Graph: Reuters
The semiconductor group is currently the strongest seller. Marvell Technology decreased by 9.5%. Micron takes 7.6%. AMD, Qualcomm, Broadcom, Intel and NVIDIA decreased by 4-6%. NVIDIA is building many new chip factories in Taiwan. The supply chain of this company also depends on the assembly in Mexico.
Luxury stocks and sports costumes are also in red. Nike currently takes 5%, Deckers Outdoor decreased by 6.5%. Ralph Lauren and Capri Holdings takes 5%.
The group of Chinese -listed corporate stocks listed in the United States did not escape the general situation. Alibaba and JD lost more than 9%. PDD – Temu, Baidu and NetEase parent company decreased by 5-7%.
The largest US bank JPMorgan has just raised the forecast of the probability of the US and global recession to 60%, from 40% before. Before JPMorgan, Goldman Sachs last month last month also made the same move.
VIX – The index of fear level on the US stock market appears over 30 points for the first time since August 2024.
Session 3/4, US stocks recorded a sharp decline in 5 years. The DJIA index decreased by 1,682 points, equivalent to 4%. S&P 500 takes 4.85%. The strongest drop is Nasdaq Composite with 6%.
World gold price is also plunged, when it drops up to 70 USD compared to the closing session of 3/4. Currently, each gold ounce is 3,045 USD.