Stocks suffered a historic rout on Friday, capping the worst week for Wall Street since the onset of the COVID-19 pandemic, as escalating trade tensions between the US and China rattled global investors. President Trump’s sweeping tariffs triggered swift retaliation from Beijing, sparking panic over a global economic downturn. The Dow posted back-to-back declines exceeding 1,500 points, while the S&P 500 entered correction territory and the Nasdaq officially slipped into a bear market. Markets closed at session lows with technology and industrials leading the collapse. The 10-year Treasury yield sank below 4% as investors fled to safety, while volatility surged to levels not seen since 2020.

Key Takeaways:

  1. Dow Posts Worst Day of 2025, Drops Over 2,200 Points: The Dow Jones Industrial Average plummeted 2,231.07 points, or 5.5%, to 38,314.86 on Friday, marking its worst day since June 2020. The index has now lost more than 3,900 points over two sessions, the first time ever that it has shed more than 1,500 points on consecutive days. 
  2. S&P 500 Suffers Steepest Weekly Drop Since Pandemic Crash: The S&P 500 tumbled 5.97% to 5,074.08, its worst one-day percentage loss since March 2020. After falling 4.84% on Thursday, the index is now more than 17% off its recent high and ended the week down 9%. Selling was broad, with just 14 stocks in the entire index posting gains on the day.
  3. Nasdaq Enters Bear Market Amid Tech Selloff: The Nasdaq Composite dropped 5.8% to close at 15,587.79, extending Thursday’s nearly 6% slide and putting the index 22% below its December peak. Apple, Nvidia, and Tesla were among the hardest hit as investors dumped growth stocks with exposure to China.
  4. China Retaliates with Sweeping Tariffs on US Goods: China announced a 34% tariff on all US imports starting April 10, responding to Washington’s cumulative 54% duties. Beijing also added several American firms to its “unreliable entities” list and launched an antitrust investigation into DuPont. The developments crushed investor hopes for de-escalation and sent global markets tumbling.
  5. European Markets Register Deepest Losses of the Year: European stocks fell sharply as the global trade standoff intensified and recession fears spread across the continent. The Stoxx 600 declined 5% on Friday to end the week down 8.3%, its worst weekly performance of 2025. The FTSE 100 dropped nearly 7%, France’s CAC 40 lost 4.26%, Germany’s DAX fell 4.95%, and Italy’s FTSE MIB tumbled 6.53%. Banking stocks were the hardest hit, falling another 8.5% as investors priced in slowing growth and rising macro risks. Political leaders in France and Germany urged domestic firms to halt new US investments, and the European Commission said it would consider retaliatory measures if negotiations with Washington collapse.
  6. Asian Stocks Drop Sharply on Trade Shock and Political Turmoil: Asian markets fell across the board Friday as investors digested the growing fallout from US tariffs and China’s retaliation. Japan’s Nikkei 225 slid 2.75% and the Topix dropped 3.37%, both entering bear market territory after falling more than 20% from recent highs. Australia’s ASX 200 fell 2.44% and is now in correction territory, down 11% since February. South Korea’s Kospi dropped 0.86% following the impeachment of President Yoon, while Thailand’s SET Index fell over 2% to its lowest level in five years. Vietnam’s benchmark index lost 3% on broad-based weakness in energy and consumer stocks. Mainland China and Hong Kong markets were closed for the Qingming Festival.
  7. Oil Falls to Lowest Level Since 2021: US crude dropped more than 6% to settle at $62.72 a barrel, the lowest since late 2021. A steeper-than-expected production increase by OPEC+ and fears of a global slowdown triggered a second straight day of heavy losses. Brent crude also fell sharply, and energy equities mirrored the plunge.
  8. March Jobs Data Beats Expectations Despite Uptick in Unemployment: US nonfarm payrolls rose by 228,000 in March, topping expectations and suggesting continued labour market resilience. However, the unemployment rate rose to 4.2% as more people entered the workforce, and previous months’ figures were revised lower. Average hourly earnings rose 0.3% for the month.
  9. 10-Year Treasury Yield Drops Below 4% on Recession Fears: The 10-year Treasury yield declined 4 basis points to 4.015%, falling below 4% for the first time in months. The 2-year yield slipped to 3.67% as investors moved into bonds amid the deepening trade standoff. Fed Chair Powell warned that the tariffs could stoke inflation and hinder growth, reinforcing expectations for a prolonged pause in interest rates.

FX Today:

  1. Euro Reverses After Sharp Rejection Above 1.1100: EUR/USD fell 0.80% to settle at 1.0963 on Friday, reversing from a multi-month high after a failed breakout above the 1.1100 resistance level. The euro remains above its 200-day SMA at 1.0733 and continues to trade within a broader uptrend from early March. The 50-day SMA at 1.0622 and 100-day at 1.0533 remain rising, providing longer-term technical support. Immediate support is seen at 1.0900, while deeper weakness could test the confluence of moving averages near 1.0700. For bulls to regain momentum, the pair would need a close back above 1.1050 and another attempt at the 1.1100 region. Until then, consolidation between 1.0900 and 1.1050 looks likely in the near term.
  2. Sterling Slides After Rejection Near 1.3100: GBP/USD declined 1.65% to 1.2885, pulling back from a fresh six-month high after stalling just above 1.3100. The move came amid broad US dollar strength and profit-taking following a strong rally from February’s lows near 1.2300. The pair remains above key support levels, including the 50-day SMA at 1.2727 and the 100-day SMA at 1.2630, but is now testing its 200-day SMA at 1.2812. Immediate downside support lies at 1.2800, followed by 1.2700. If that area fails, the pair could unwind further gains. On the upside, bulls need a clean break and daily close above 1.3000 to resume the uptrend and retest the 1.3115–1.3200 zone seen last September.
  3. Aussie Collapses on Growth Fears and RBA Bets: AUD/USD plunged 4.62% to close at 0.6036, its lowest level of the year and the worst daily performance in months. The pair broke decisively below the 0.6250–0.6300 support range and extended losses beneath the 50-day SMA at 0.6299 and 100-day SMA at 0.6312. Momentum indicators point to further downside, with the next key level at the psychological 0.6000 handle. A sustained drop below that would open the door to late-2022 lows. Bulls would need to reclaim the 0.6250 zone and close above the 50-day SMA to ease pressure.
  4. Yen Stabilises After Violent Two-Day Decline: USD/JPY rose 0.61% to 146.90, pausing a sharp two-session selloff that saw the pair drop from near 150.00 to below 145.50. The 50-day SMA at 150.55, the 100-day at 152.71, and the 200-day at 151.33 are now all pointing lower, and any rallies may be capped by these levels. Immediate resistance is seen at 148.50, while support holds at 145.00. If that fails, deeper losses could expose the 143.60–144.00 region. For a shift in tone, bulls would need a move back above the 150.00 handle. 
  5. Gold Falls from Highs as Powell Flags Inflation Risks: Gold dropped 2.47% to close at $3,037.31, pulling back from a midweek high of $3,135 after Fed Chair Jerome Powell warned that tariffs could reignite inflation. The speech triggered risk-off flows across markets, but also raised concerns that inflation may linger longer, limiting the Fed’s policy flexibility. Technically, gold remains above all major SMAs, with the 50-day at $2,937.82, 100-day at $2,797.28, and 200-day at $2,669.99 all rising. Support is seen at the psychological $3,000 mark, followed by $2,980. A strong rebound above $3,120 would be required to confirm that the uptrend remains intact and target a fresh push toward $3,200. 

Market Movers:

  1. Apple Drops as China Tariffs Threaten Supply Chain: Shares of Apple fell 7.3% after China imposed a 34% tariff on all US imports, fuelling concerns over the company’s deep manufacturing reliance on China. The iPhone maker has now lost 13% for the week.
  2. Tesla Sinks Over 10% Amid Trade War Fallout: Tesla declined 10.4% on Friday, leading losses among large-cap tech stocks, as escalating US–China tensions sparked fears of demand destruction in key markets. 
  3. Nvidia Slides on China Exposure and AI Uncertainty: Nvidia fell 7.4% as chipmakers came under pressure amid renewed fears of export restrictions and weakening Chinese demand. The stock has now lost over 15% in two sessions.
  4. JPMorgan and Goldman Slide as Yields Drop: JPMorgan fell 7.3% and Goldman Sachs lost 7.8% as bank stocks declined alongside US Treasury yields. 
  5. Shell Declines as Oil Plunges to 2021 Levels: Shares of Shell dropped 8% after US crude oil prices fell to their lowest level in more than three years. 
  6. DuPont Plunges After Chinese Antitrust Probe: Shares of DuPont sank nearly 13% after Chinese regulators announced an antitrust investigation into the company and added it to the “unreliable entities” list. The probe raised fresh concerns about retaliation against US firms operating in China.

Markets ended the week under intense pressure as fears of a global trade war triggered a historic selloff across asset classes. Major US indexes suffered their worst weekly losses since the pandemic crash, with China’s sweeping retaliatory tariffs igniting broad-based selling in equities, commodities, and risk-sensitive currencies. Treasury yields plunged as investors sought safety, while oil collapsed to multi-year lows on weakening demand expectations. With political and economic uncertainty at elevated levels, traders will be watching closely for signs of de-escalation or further retaliation in the days ahead.