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03.04.2025 01:24 PM
US Market News Digest for April 03

Futures plunge after new tariffs: Nike and Boeing hit hardest. Fear index rises

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US stock markets opened April sharply in the red. Donald Trump announced an increase in tariffs on imports from China and the European Union. Futures on the S&P 500 fell by 3.5%, and the Nasdaq 100 dropped by more than 4.5%. The hardest-hit stocks were those of companies directly dependent on global supply chains: Nike, Boeing, and Caterpillar. Investors are evaluating the impact of the new tariffs on revenue and margins, fearing a slowdown in business activity and consumer demand.

Amid the decline, short-term sellers became more active. Volatility increased, giving traders more opportunities to catch sharp market movements. Those who trade on news and momentum may use the current downward movement as an opportunity. Long-term investors see the dip as a chance to enter quality stocks at lower prices. We have everything needed to effectively capitalize on this market situation—access to key US stocks, narrow spreads, and low commissions.

Fear index rises: markets react to tariffs with a surge in volatility

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Markets plunged sharply after Trump's trade initiatives. Investors are not just locking in profits but actively hedging: the VIX index rose, and the yield on US 10-year Treasury bonds reached its highest levels in recent weeks. This indicates growing anxiety in the market—investors are concerned about both economic slowdown and inflation acceleration due to new restrictions.

With uncertainty remaining high, traders are looking to mitigate risks and take a more flexible approach. A volatility strategy is working well, especially on instruments that respond strongly to news. Those trading indices or stocks with a high beta coefficient are finding good opportunities for short positions. It's important to carefully monitor market reactions and keep positions under control. More details via the link.

Tech sector under pressure: Apple loses 7% after tariff announcement

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After the announcement of new tariffs, the market began to decline across the board. The tech sector was among the leaders of the downturn. Apple's shares slumped by 7%—investors are factoring in higher costs and logistical challenges. Companies involved in international supply chains must recalculate budgets, adjust forecasts, and delay large projects.

Economists are warning: the sharp increase in tariffs could lead to stagnation or even a recession. But for traders, such a situation creates opportunities. One can look for entry points into strong stocks after a price drop. There are also opportunities to build trades on rebounds in the tech sector. Such periods often open up promising levels for medium-term trades. More details via the link.

Irina Maksimova,
Analytical expert of InstaForex
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