Sharp Drop in US Stock Futures After Trump Tariffs Shock
S&P 500 futures fell 4.8%, while Nasdaq dropped 5.3%, and Dow Jones lost 1,700 points, following a collapse that wiped out $6.6 trillion in market value.
Weekly Bulletin - World
Suspension of Tariffs Boosts Wall Street
President Donald Trump announced a 90-day suspension of "reciprocal" tariffs in several countries, sparking a historic market recovery. The S&P 500 saw a 9.52% increase in one day, its third-largest gain since World War II, while the Dow Jones surged over 2,900 points.
Volatility Dominates US Markets
Despite the recovery on Friday, the markets faced a volatile week due to uncertainties over the US-China trade war. The S&P 500 dropped 3.46% on Thursday, while Nasdaq fell 4.31%, reflecting concerns over trade policies.
Trump Re-engages Nuclear Talks with Iran
The US and Iran resumed talks on Iran's nuclear program in Oman. This marks the first direct contact since Trump reassumed office, with both parties describing the discussions as "positive and constructive."
Tariff Exemption for Technology
Trump announced that products like smartphones, computers, and chips will be exempt from the new tariffs imposed on China. However, toys and other products remain highly tariffed, affecting sectors like the US toy retail industry.
Gold Prices Rise as Safe Haven
Global uncertainty drove gold prices to record levels. Newmont Corporation, the world's largest gold producer, saw its shares rise nearly 8% on Friday.
Impact of Tariffs on US Sectors
Tariffs of up to 145% on Chinese products continue to negatively impact US industries, particularly retail and manufacturing. Companies are rethinking supply chains to mitigate additional costs.
Mixed Results from US Banks
US major banks released varied quarterly results this week. While some exceeded expectations, others reported struggles due to rising credit costs and economic volatility.
Tech Rally Leads Recovery
Technology companies led the market recovery on Friday after optimistic comments from the White House about a possible trade deal with China.
Economic Data Disappoints
The University of Michigan's consumer sentiment index showed results below expectations in April, with growing concerns about future inflation and the impact of trade policies.
Top Gainers
- Delta Air Lines (DAL): The 23.4% increase on April 9th was driven by the temporary suspension of "reciprocal" tariffs by Trump, which improved investor confidence and increased travel expectations[2][5].
- United Airlines (UAL): The 23% increase on April 9th benefited from the same wave of optimism that boosted airline stocks following the suspension of tariffs[2][5].
- Nvidia (NVDA): The 15% increase on April 9th was a significant rise after the suspension of tariffs, reflecting relief in the tech sector[2].
- Tesla (TSLA): The 19% increase on April 9th was part of the overall market rally after the suspension of tariffs, despite facing recent pressures[2].
- Monolithic Power Systems (MPWR): The 10% increase on April 11th continued after a volatile week, driven by an improvement in the business environment[1].
Top Losers
- Apple (AAPL): Significant loss after the tariff announcement. Despite a 4% recovery on April 11th, it still faces pressures due to its dependence on China in its supply chain[1][2].
- Meta Platforms (META): Meta faced pressures due to stock sales in April, concerns over growth slowdown, and regulatory changes[8].
- Tesla (TSLA): Before the rally on April 9th, Tesla faced challenges due to concerns about demand and competition in the electric vehicle sector[8].
- Groupon (GRPN): Despite being listed as a promising growth stock, it faced volatility due to general economic uncertainty[3].
- Stellantis (STLA): Stellantis experienced a 16% loss before the rally on April 9th, due to uncertainty regarding tariffs and impact on the automotive industry[2].
