To The Moon

Black Monday: Market Meltdown

🇺🇸 S&P 500 Index: -0.23%

🇺🇸 Nasdaq Index: +0.10%

🇪🇺 STOXX 600 Index: -4.49%

🇯🇵 Nikkei 225 Index: -7.83%

🇭🇰 Hang Seng Index: -13.22%

🇨🇳 CSI 300 Index: -7.05%

🇸🇬 Straits Times Index: -7.46%

Wall Street trimmed losses with the S&P 500 closing down 0.2%, while the Nasdaq Composite posted a slight gain of 0.1%. Despite ongoing market volatility, tariff-related concerns continue to intensify uncertainty and put pressure on the broader market.

Asia-Pacific markets plummeted, with the Hang Seng Index and CSI 300 Index crashing 13.2% and 7.6% respectively—marking the worst Monday open in nearly three decades. The sell-off was driven by the escalating U.S.-China tariff retaliation.

Japan's Nikkei 225 Index plunged 7.8%, officially entering a bear market, with a cumulative drop of 23% from its December high, reflecting deepening fears over the worsening trade war.

Upcoming Events:

On Wednesday, Japan's Consumer Confidence Index will be in the spotlight.

On Thursday, investors will monitor key data releases: the U.S. will publish Fed meeting minutes, annual inflation rate, and initial jobless claims; China will release its own annual inflation rate.

On Friday, the week wraps up with the preliminary reading of the University of Michigan Consumer Sentiment Index.

Things to Know Today:

1. President Trump ruled out halting the rollout of large-scale new tariffs, calling them“essential”to his economic agenda. He emphasized that unless countries offer“exceptional”trade deals, current tariffs will remain. He also expressed willingness to reach“fair and good”deals with all nations.

President Trump

2. Trump warned that if China doesn't withdraw its 34% retaliatory tariffs by April 8, the U.S. will impose an additional 50% tariff on Chinese goods—on top of the existing 34% and 20% tariffs, escalating trade tensions further.

3. Trump spoke with Japanese Prime Minister Ishiba, discussing a framework for negotiations described as “tough but fair.”Tokyo currently faces a 24% general tariff and an additional 25% on autos. Ishiba urged the U.S. to reconsider, calling the situation a “national crisis.”

Trump with Ishiba

4. The EU has scrapped its original plan to impose a 50% retaliatory tariff on American whiskey, opting instead to levy 25% tariffs on select U.S. products in response to Trump's tariffs on steel and aluminum.

American whiskey

5. China is considering launching a $274 billion stimulus package to counter the effects of Trump's new round of tariffs. Measures include boosting consumer spending, raising birth rates, and providing export subsidies. Meanwhile, China's sovereign fund, Central Huijin, has begun increasing its holdings in ETFs to support the A-share market and stabilize investor confidence.

Key Takeaway:

The current market turmoil stems from abrupt policy shifts rather than structural problems. Until policy direction becomes clearer, non-U.S. markets and defensive assets may offer some stability. Over the long term, despite potential short-term slowdowns, the U.S. economy remains resilient.

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