ADDX GO Market Morning Wrap - 5th Apr

Stock Market

The three major stock indexes on the New York Stock Exchange plunged sharply on the 4th. The Dow Jones Industrial Average fell below the 40,000-point mark, and the Nasdaq and S&P 500 indexes dropped nearly 6%. The Nasdaq entered a technical bear market (down more than 20% from its recent high).

By the close of trading on that day, the Dow Jones Industrial Average fell 2,231.07 points from the previous trading day to close at 38,314.86, a decrease of 5.50%. The Standard & Poor's 500-stock index dropped 322.44 points to close at 5,074.08, a decline of 5.97%. The Nasdaq Composite Index declined 962.82 points to close at 15,587.79, a decrease of 5.82%.

This week, the Dow Jones Industrial Average fell 7.86% in total, the Nasdaq Composite Index dropped 10.02% in total, and the S&P 500-stock index declined 9.08% in total.

In terms of news, US President Trump said that this would be the best time for Federal Reserve Chairman Powell to cut interest rates. Federal Reserve Chairman Powell said that US tariffs could lead to higher inflation, slower economic growth, and an increased risk of unemployment in the United States. Powell said that with regard to the tariff issue, it was "too early" to adjust monetary policy.

Large-cap technology stocks generally declined. Apple fell more than 7% and its market capitalization dropped below $3 trillion. Tesla dropped more than 10% and its market capitalization fell below $800 billion. Netflix declined more than 6%, Meta dropped more than 5%, Amazon fell more than 4%, and Google and Microsoft declined more than 3%.

Among chip stocks, Micron Technology plunged nearly 13% (it had dropped more than 16% the previous day), Intel fell more than 11%, ARM declined more than 10%, Qualcomm and AMD dropped more than 8%, and Nvidia fell more than 7% for two consecutive days.

Key Events

Trump Urges Rate Cut Again. Federal Reserve Chairman: It's Too Early:US President Trump posted on the social media platform "Truth Social" on the 4th local time, saying that now was the perfect time for Federal Reserve Chairman Powell to cut interest rates. On the same day, Powell said that US tariffs could lead to higher inflation, slower economic growth, and an increased risk of unemployment in the United States. Powell said that with regard to the tariff issue, it was "too early" to adjust monetary policy.
Trump Announces Another 75-Day Grace Period for the "Sell-or-Ban" Law on TikTok: US President Trump announced on social media on the 4th that he would sign an executive order to give TikTok another 75-day grace period for the "sell-or-ban" law.
Berkshire Hathaway Refutes False Reports about Buffett's Remarks: Berkshire Hathaway said on Friday that the reports on social media about the remarks allegedly made by the company's chairman were "false". Previously, US President Trump shared a video on social media, implying that Warren Buffett supported the US President's economic policies.

Forex & Commodities

International oil prices dropped sharply on the 4th. By the close of trading on that day, the price of light crude oil futures for May delivery on the New York Mercantile Exchange fell $4.96 to close at $61.99 per barrel, a decrease of 7.41%.

The price of Brent crude oil futures for June delivery on the London Mercantile Exchange declined $4.56 to close at $65.58 per barrel, a decline of 6.50%.

International gold and silver prices also plummeted. The settlement price of COMEX gold futures dropped $86.3, a decrease of 2.76%, to $3,035.4 per ounce. The settlement price of COMEX silver futures fell $2.74, a decrease of 8.57%, to $29.23 per ounce.

The US dollar index, which measures the US dollar against six major currencies, rose 0.93% on the day and closed at 103.024 in the late trading of the foreign exchange market.

Key Events

Eight Major Oil-Producing Countries including Saudi Arabia and the UAE Will Increase Production:The Organization of the Petroleum Exporting Countries (OPEC) said in a statement on the 3rd that eight OPEC and non-OPEC oil-producing countries had decided to increase production by 411,000 barrels per day on average from May this year. This increase was much higher than market expectations. Representatives of the eight countries-Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman-held an online meeting on the same day to discuss the international oil market situation and prospects.

Cryptocurrency

Bitcoin rose 2.5% to $84,075, and Ethereum jumped 1.4% to $1,810.

XRP (XRP-USD) surged 3.6%, BNB (BNB-USD) rose 1.7%, and Solana (SOL-USD) added 6.3%.

Dogecoin (DOGE-USD) advanced 6.3%, while Cardano (ADA-USD) rose 3.4%.

Key Events

In the financial market turmoil of the past few days, Bitcoin is showing signs of breaking free from the gravitational pull of technology stocks:Since the pandemic, Bitcoin has been highly positively correlated with the Nasdaq 100 index, and its trend has usually been in sync with the benchmark index. But on Friday, Bitcoin actually rose about 1% to around $83,300, while the Nasdaq 100 index fell for the second consecutive day due to Trump's tariff issues. Augustine Fan, a partner at the cryptocurrency trading solutions platform SignalPlus, said, "We think Trump's radical move has accelerated people's re-examination of the long-term value of Bitcoin in investment portfolios, because the reset of the global order has a significant medium-term impact on the United States as a destination for capital."