Market Turmoil: Stocks Plunge Amid Global Trade Fears

The U.S. stock market experienced significant turmoil over the past week, culminating in two days of heavy losses that marked one of the most tumultuous periods since the onset of the COVID-19 pandemic in 2020. Concerns surrounding U.S. tariffs and retaliatory actions by other countries have shaken investor confidence globally.

The S&P 500 index fell further into correction territory, dropping 5.9% on Friday alone. The Dow Jones Industrial Average mirrored this trend, plummeting by 2,231 points, or 5.5%. Meanwhile, the Nasdaq Composite entered a bear market, declining 20% from its December peak and closing down 5.8% for the week.

Nasdaq Composite Falls into Bear Market

10-Year Treasury Yield: 4.008%

In response to the market volatility, investors relocated their funds into government bonds, resulting in a decrease in the 10-year Treasury yield, which stabilized around 4% by late Friday. The two-year Treasury yield remained at about 3.5%.

JPMORGAN RAISES RECESSION RISK FOR U.S.

This week, President Trump followed through on his commitment to impose tariffs on most of the nation’s trading partners. Countries affected included long-time adversaries like China and the European Union, as well as Japan, Vietnam, and Taiwan. In retaliation, China announced a staggering 34% tariff early Friday, triggering speculation about similar actions from other nations.

“The increased tariffs will affect our economy and are expected to contribute to higher inflation in the upcoming quarters,” Federal Reserve Chairman Jerome Powell cautioned during his remarks on Friday. Prior to Powell’s statements, JPMorgan raised the likelihood of a recession this year to 60%.

Separately, Trump urged Powell to consider reducing interest rates. “This would be a PERFECT time for Fed Chairman Jerome Powell to cut interest rates. He is always ‘late,’ but he could change his image quickly. With energy prices down, interest rates decreasing, inflation low, even egg prices down 69%, and jobs on the rise—all within two months—a significant victory for America. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!” he posted on Truth Social.

Key technology stocks, including Nvidia, Apple, Amazon, and Palantir, faced sharp declines on Friday. Nevertheless, some investors perceive the downward trend as a strategic buying opportunity.

Investment strategist Keith Fitz-Gerald of the Fitz-Gerald Group advised, “You can think like a shark, or you can think like a minnow. And if you think like a minnow, you’re going to get flushed every time. If you think like a shark, hunting for the world’s best companies at trying times, that’s the path to profits.” He identified Apple and Tesla as prime targets for investment.

Energy stocks suffered substantial losses, declining over 8% on Friday, with major downturns from companies such as Schlumberger, ExxonMobil, and Chevron. West Texas Intermediate crude dropped more than 10% over the week, closing just below $62 per barrel.

GOLD: TIME TO BUY, SELL, OR HOLD?

Gold, traditionally viewed as a safe haven during market instability, experienced a 2.4% decline over the week, settling at $3,012 per ounce after reaching an all-time high of $3,139.90 on Wednesday.

In the cryptocurrency sector, Bitcoin remained stable around the $83,000 mark.