ADDX GO Market Morning Wrap - 4th Apr
Stock Market
Due to US President Trump's announcement of a "historic" tariff policy, the three major stock indexes in New York stock market dropped significantly on the 3rd.
As of the close of the day, the Dow Jones Industrial Average fell 1,679.39 points compared to the previous trading day, closing at 40,545.93 points, with a decline rate of 3.98%; the S&P 500 Index fell 274.45 points, closing at 5,396.52 points, with a decline rate of 4.84%; the Nasdaq Composite Index fell 1,050.44 points, closing at 16,550.61 points, with a decline rate of 5.97%.
Among them, the Nasdaq recorded its largest single-day decline since March 2020, and both the S&P 500 Index and the Dow Jones Industrial Average recorded their largest single-day declines since June 2020.
Most large technology stocks declined. Apple fell by more than 9%, Amazon and Meta fell by nearly 9%, Tesla fell by more than 5%, Google-A fell by more than 4%, Microsoft fell by more than 2%, and Netflix fell by more than 1%.
In terms of chip stocks, Micron Technology plunged by more than 16%, On Semiconductor fell by more than 12%, Broadcom fell by more than 10%, ARM and Qualcomm fell by more than 9%, NVIDIA fell by more than 7%, and ASML fell by more than 6%.
Intel rose by more than 2%. It is reported that Intel and Taiwan Semiconductor Manufacturing Company (TSMC) have initially agreed to establish a joint venture for chip production. TSMC will hold a 20% stake in the new company, and Intel and other US companies will hold the majority stake in the proposed joint venture.
Key Events
- Countermeasures are here! Canada announces a 25% tariff increase on US cars: On Thursday, April 3 (local time), Canada's new Prime Minister Carney announced a series of countermeasures against US tariffs, and at the same time said that Trump's protectionist measures are a tragedy for global trade.
- Stellantis announces the temporary layoff of 900 US workers: As Trump's auto tariffs officially took effect on Thursday, Stellantis, the world's fourth-largest automaker, announced that approximately 900 workers in the US automotive industry chain have been temporarily laid off. The company's assembly plants in Canada and Mexico are also affected.
- The UK launches a consultation process for imposing retaliatory tariffs on the US: The UK government announced on the 3rd that it will launch a one-month consultation process for imposing retaliatory tariffs on the US in response to the recent trade restriction measures taken by the US on UK export goods.
- Intel is reported to establish a joint venture with TSMC: It is reported that Intel has initially agreed to establish a chip manufacturing joint venture with TSMC. Intel once rose by more than 8% during the intraday trading, erasing the intraday decline of more than 5%, and finally closed up by 2%.
Forex & Commodities
International oil prices dropped significantly on the 3rd.
As of the close of the day, the price of light sweet crude oil futures for May delivery on the New York Mercantile Exchange fell by $4.76, closing at $66.95 per barrel, with a decline rate of 6.64%.
The price of Brent crude oil futures for June delivery on the London Intercontinental Exchange fell by $4.81, closing at $70.14 per barrel, with a decline rate of 6.42%. International gold prices closed lower, once breaking through the $3,100 mark. The settlement price of COMEX gold futures fell by $44.5, with a decline rate of 1.41%, reporting $3,121.7 per ounce.
The US dollar index dropped significantly on the 3rd. The US dollar index, which measures the value of the US dollar against six major currencies, fell by 1.67% on that day and closed at 102.073 in the late trading of the foreign exchange market, erasing all the gains since Trump's victory on November 5, 2024.
Key Events
- US oil plummets. Under the shadow of Trump's tariffs, eight OPEC+ countries announce an unexpected increase in production: Just as the global stock market and the commodity market are bearing the heavy blow of Trump's "reciprocal tariffs", international oil prices have suffered another blow - several core OPEC+ oil-producing countries announced that they will implement an unexpected increase in oil production in May.
Cryptocurrency
Bitcoin dropped by 5.1% to $82,052.
Ethereum (ETH-USD) was down by 6.8% to $1,786.
XRP (XRP-USD) dipped by 4.8%, BNB (BNB-USD) sank by 2.9%, and Solana (SOL-USD) tumbled by 12%.
Dogecoin (DOGE-USD) dropped by 8.6%, while Cardano (ADA-USD) fell by 7.3%.
Key Events
- BlackRock CEO warns: The US dollar may lose its reserve currency status and be replaced by Bitcoin: Larry Fink, CEO of BlackRock, the world's largest asset management company, warned in this week's annual letter to investors that Bitcoin may replace the US dollar as the global reserve currency. Although the recent concerns about the US dollar's reserve currency status are largely triggered by US President Trump's tariff policy, Fink pointed out that the continuously expanding US national debt is the main concern, and this debt is growing at an unsustainable rate. Fink warned: "If the US cannot control its debt and if the deficit continues to expand, the US dollar's reserve currency status may give way to digital assets such as Bitcoin."
