MARKET SNAPSHOT

U.S. stocks ended with significant declines after China moved to retaliate against U.S. tariffs, dashing hopes for a speedy resolution to the global trade war. Treasury yields fell again in the aftermath of President Trump's tariff announcements, with the 10-year Treasury yield slipping below 4%. Oil prices plummeted as risk appetite continued to be shaken. Gold continued its slide in volatile trading amid the wider market turmoil.

MARKET WRAPS

EQUITIES

U.S. stocks posted declines for a second day as China said it would impose an additional 34% tariff on all imported U.S. goods, matching President Trump's latest levies on Chinese imports in an escalating trade war.

The Dow Jones Industrial Average fell 5.5%. The S&P 500 droped 6% and the Nasdaq Composite slid 5.8%.

The news completely overshadowed positive employment data.

The U.S. added 228,000 jobs in March, well above the gain of 140,000 jobs economists polled by The Wall Street Journal had expected.

"In a normal environment, today's jobs report would be welcome news. But this is not a normal environment," said Ronald Temple, Lazard's chief market strategist. "With the trade war escalating, investors are ignoring lagging economic indicators like unemployment," Temple said.

Markets in China were closed for a holiday.

Japan's Nikkei Stock Average fell 2.8% as chip and financial stocks led the declines.

Australia's S&P/ASX 200 entered correction territory, closing 2.4% lower.

New Zealand's NZX-50 fell 0.9%, snapping a three-session winning streak.

COMMODITIES

Oil futures fell to a nearly four-year low in a second day of heavy selling after China retaliated against U.S. tariffs with duties of its own, adding to concerns about a loss of demand.

"This pullback reflects market uncertainty and could weigh on global crude prices in the near term, particularly if trade tensions hinder economic growth in key oil-consuming regions," said Joseph Dahrieh of Tickmill. "Volatility is likely to increase as markets digest the full implications of the tariffs."

West Texas Intermediate fell 7.4% to $61.99 a barrel. Brent dropped 6.5% to $65.58 a barrel

Gold futures fell 2.7% to $3,012.00 per ounce for the largest one-day dollar and percentage decline since Nov. 25, 2024. It dropped $127.90 over the last two sessions for the largest two-day dollar decline since April 15, 2013. Gold is down 4.1% from its record high of $3,139.90 hit on April 2.

TODAY'S TOP HEADLINES

Powell Warns of Higher Prices, Weaker Growth After Tariff Plan

ARLINGTON, Va.-Federal Reserve Chair Jerome Powell said the U. S.economy was likely to face a period of higher prices and weaker growth than seemed possible a few weeks ago because of larger-than-anticipated tariff hikes announced by President Trump.

Powell laced his remarks Friday with an undercurrent of caution about how the central bank would be able to address any fallout. Officials want to ensure one-time price increases don't lead to persistently higher inflation.

In 2019, the Fed pre-empted potential fallout from Trump's trade war with China by cutting rates before weakness was evident in the economy. But Powell hinted that the current situation would be different. Because inflation has been elevated in recent years and because the current round of tariffs is much larger, the central bank this time could wait to cut rates until signs of economic weakness are more apparent.

Hiring Defied Expectations in March, With 228,000 New Jobs

Employers added jobs in March at a much stronger pace than expected, a sign that the labor market remained strong despite economic uncertainty, government layoffs and market turbulence.

The U.S. added 228,000 jobs last month, the Labor Department reported Friday, well above the gain of 140,000 jobs that economists polled by The Wall Street Journal had expected to see.

That was also well above the average monthly gain of 158,000 over the prior 12 months. However, job gains for January and February were revised lower. The U.S. added 117,000 jobs in February.

The Rest of the World Is Bracing for a Flood of Cheap Chinese Goods

President Trump's jumbo tariffs on China threaten to create a new problem for a global economy already stressed over trade: a $400 billion deluge of Chinese goods looking for new markets.

U.S. consumers and businesses learned Wednesday that, from April 9, Chinese imports will face tariffs of around 70% on average, after Trump walloped China with stiff new duties as part of his "Liberation Day" trade broadside. The new tariffs will likely push up prices in the U.S. for products ranging from consumer electronics and toys to machinery and essential components for manufacturing.

Trump Grants 75-Day Extension to Reach TikTok Deal

WASHINGTON-President Trump is giving more time for investors to attempt to pull off a highly complex deal to operate TikTok in the U.S., sparing the Chinese-owned social-video app from a national ban.

Trump-alluding to Chinese frustration over his tariffs-on Friday signed an executive order granting a 75-day extension to work out details of a potential deal. He had faced a Saturday deadline to act, having previously suspended enforcement of a 2024 law calling for TikTok to be sold or shutdown in the U.S.

"My Administration has been working very hard on a Deal to SAVE TIKTOK, and we have made tremendous progress," Trump wrote on social media. "The Deal requires more work to ensure all necessary approvals are signed, which is why I am signing an Executive Order to keep TikTok up and running for an additional 75 days."

Tesla Stock Plunges. It Has to Do With China.

President Donald Trump's trade war is escalating fast-and Tesla stock is falling with the broader market.

Shares of the electric vehicle maker dropped 10.4%, to $239.43, on Friday trading, while the S&P 500 and Dow Jones Industrial Average fell 6% and 5.5%, respectively. Friday's dip left Tesla shares down 9.2% for the week.

Tesla's losses accelerated after China announced 34% retaliatory tariffs on the U.S. The move from China comes after Trump announced 34% "reciprocal" tariffs on China on Wednesday evening. The levies were much higher than expected, with "reciprocal" tariff rates adjusted for "currency manipulation and trade barriers."

Tariff Turmoil Freezes the U.S. IPO Market

A glimmer of hope that U.S. initial public offerings were about to return is gone.

Ticketing marketplace StubHub and buy-now-pay-later fintech company Klarna are postponing their IPO roadshows, which were set to kick off next week, according to people familiar with the matter.

Another fintech company, Chime, is pushing off filing its financials publicly with regulators, also delaying its IPO, some of those people said. And virtual physical therapy company Hinge Health is watching the market before its anticipated late-April offering, the people said.

Expected Major Events for Monday

01:30/AUS: Mar ANZ-Indeed Job Ads

05:00/JPN: Feb Indexes of Business Conditions - Preliminary Release

06:30/AUS: Mar Official Reserve Assets

08:20/TAI: Mar International Reserves

08:30/HK: Mar Foreign Exchange Reserves

09:00/SIN: Mar Official Foreign Reserves

09:59/PHI: Mar Gross International Reserves

09:59/CHN: Mar Foreign Exchange Reserves

17:00/NZ: Mar QV Nationwide Residential Property Values

22:00/NZ: 1Q NZIER Quarterly Survey of Business Opinion

23:00/SKA: Feb Balance of payments

23:50/JPN: Mar Provisional Trade Statistics for 1st 20 days of Month

23:50/JPN: Feb Balance of Payments

23:50/JPN: Mar International Transactions in Securities

23:50/JPN: 4Q Revised Balance of Payments

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(END) Dow Jones Newswires

April 06, 2025 16:30 ET (20:30 GMT)

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