Here are the most important news items that investors need to start their trading day:
FILE PHOTO: A screen tracks trading on the floor at the New York Stock Exchange (NYSE) after the closing bell in New York City, U.S., April 4, 2025.
Stock futures dropped again Monday after a two-day rout sparked by President Donald Trump‘s torrent of tariffs around the globe. The S&P 500 shed more than 10% over the two sessions, including a Friday nosedive that was the index’s worst day since the outbreak of the pandemic in March 2020. The Nasdaq Composite lost nearly 6% each of Thursday and Friday, sliding into a bear market, or down more than 20% from its recent record. The Dow Jones Industrial Average dropped more than 1,500 points in consecutive sessions for the first time ever. Investors will be watching whether Trump will show any willingness to negotiate with trading partners on the new duties – and whether those nations follow through on threatened retribution. As the trade war sparks fresh fears about inflation and a U.S. recession, traders will also have an eye on the consumer price index and initial jobless claims due Thursday, along with the producer price index set for Friday. Follow live market updates.
A handout photo taken on November 21, 2012 and released on October 8, 2024 by the Australian Antarctic Division shows a waddle of King penguins standing on the shores of Corinthian Bay in the Australian territory of Heard Island in the Southern Ocean.
The first round of Trump’s new duties took effect on Saturday. The 10% tariffs apply to goods from nations including Great Britain, Colombia and Australia (and by proxy, a chain of the country’s territorial islands inhabited by no people – but plenty of penguins). The next wave – which has caused much more consternation on Wall Street – will start on Wednesday. The duties will hit imports from dozens of countries and blocs including China, Vietnam and the European Union. The rates range from 11% to about 50%, and will affect a range of goods coming into the U.S., from apparel and toys to appliances, electronics and food. Follow live updates on Trump’s tariffs.
U.S. President Donald Trump gestures as he arrives at Joint Base Andrews in Maryland, U.S., April 6, 2025.
After the U.S. stock market plummeted to close the week, Trump and his economic advisors again argued temporary pain was worth the resurgence in U.S. manufacturing they have promised. “I don’t want anything to go down, but sometimes you have to take medicine to fix something,” Trump told reporters on Sunday. As many investors hold out hope that Trump can strike agreements with key trading partners to avoid the duties, the U.S. president left the door open – even if a key advisor didn’t. Trump said he is “willing to deal with China, but they have to solve their [trade] surplus” with the U.S. It is unclear if he meant he wanted to eliminate the entire $295 billion trade deficit in goods with China before he withdrew the additional 34% tariff set to take effect Wednesday.
Jamie Dimon, CEO of JP Morgan Chase, speaking on CNBC’s Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. 22nd, 2025.
Major voices in business were slow to criticize Trump’s escalation of a global trade war as stocks plunged last week. That may be starting to change. In his closely watched annual shareholder letter Monday, JPMorgan Chase CEO Jamie Dimon said the new duties could fuel inflation and damage an already slowing economy. “Whatever you think of the legitimate reasons for the newly announced tariffs – and, of course, there are some – or the long-term effect, good or bad, there are likely to be important short-term effects,” Dimon said. “We are likely to see inflationary outcomes, not only on imported goods but on domestic prices, as input costs rise and demand increases on domestic products.” Billionaire investor Bill Ackman, who backed Trump during last year’s election, also said the U.S. is “in the process of destroying confidence in our country as a trading partner.”
Fears that the global trade conflict will cause a recession are hitting markets beyond stocks. U.S. crude oil prices fell below $60 a barrel on Monday to its lowest level since 2021 on expectations of slower economic activity. If the trend holds, consumers could see a silver lining in the form of cheaper gas. Meanwhile, the price of bitcoin, often seen as an indicator of market sentiment, dropped about 4% and was trading below $77,000 on Monday. It has fallen nearly 30% from its January all-time high.
– CNBC’s John Melloy, Tanaya Macheel, Hakyung Kim, Hugh Son and Lee Ying Shan contributed to this report.
