Market Recap: April 7 – S&P 500 Slides Further as Trump Threatens New China Tariffs

Market Recap: April 7 – S&P 500 Slides Further as Trump Threatens New China Tariffs

U.S. equities closed mostly lower on Monday, April 7, as markets digested the fallout from last week's massive sell-off and braced for new tariff threats from President Donald Trump targeting China.

• S&P 500 slipped 0.2% to 5,062.3

• Dow Jones Industrial Average dropped 0.9% to 37,965.6

• Nasdaq Composite eked out a 0.1% gain to 15,603.3, after officially entering a bear market Friday (defined by a 20% drop from its recent peak)

Monday’s trading followed a brutal Friday session where:

• S&P 500 lost 6%

• Dow fell 5.5%

These sharp declines capped off a week of heavy losses across all three major indices.

Sector Breakdown

Despite Monday's modest recovery in some areas, most S&P sectors ended in the red, led by declines in:

• Real Estate

• Materials

Only communication services and technology sectors managed to close slightly higher.

Trump Escalates Tariff Threats

President Trump intensified market concerns by announcing a new round of 50% tariffs on Chinese imports, set to take effect Wednesday—unless Beijing reverses its retaliatory measures.

“All talks with China concerning their requested meetings with us will be terminated!” Trump said on social media. He added that negotiations with other countries would begin immediately.

Bond Yields Spike

Amid trade war fears, U.S. Treasury yields surged:

• 10-year yield: +22.1 basis points to 4.21%

• 2-year yield: +12 basis points to 3.79%

The rising yields reflect investor expectations of persistent inflationary pressure due to higher import costs.

Recession Fears Intensify

• JPMorgan CEO Jamie Dimon warned that tariffs could "slow down growth" and potentially trigger a recession.

• BlackRock CEO Larry Fink added that many CEOs now believe the U.S. is already in a recession, according to The Wall Street Journal.

  
  

  Corporate Impact: Apple, Tesla, Banks & Airlines

  Apple (AAPL) and Tesla (TSLA) are among the most exposed to the tariff fallout:

  • Apple shares fell 3.7% (worst performer on the Dow)

  • Tesla declined 2.6%

  Wedbush Securities warned that these tariffs pose major threats to both companies’ cost structures and consumer demand.

  • Morgan Stanley added that mid-cap banks could see weaker earnings and loan growth

  • UBS Securities expects airlines' 2025 earnings to face pressure, citing an economic slowdown risk

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  Commodities and Movers

  • Crude Oil (WTI) fell 1.7% to $60.96 per barrel, extending last week's 11% drop

  • Gold declined 1.2% to $3,000.40/oz, while Silver rose 2.5% to $29.97/oz

  Top Gainers:

  • Nvidia (NVDA) +3.5%

  • Amazon (AMZN) +2.5%

  • Dollar Tree (DLTR) +7.8% after Citigroup upgraded the stock to Buy with a price target of $103

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  Market Breadth and Volume

  • On the NYSE, declining stocks outnumbered advancers 4.45 to 1

    • 42 stocks hit new highs

    • 2,036 stocks hit new lows

  • On the Nasdaq, losers beat gainers 2.12 to 1

    • 10 stocks hit new highs

    • 999 stocks hit new lows

  Total volume traded on U.S. exchanges reached 29.13 billion shares, sharply above the 20-session average of 17.13 billion.

  Friday’s trading volume stood at 26.79 billion shares, surpassing the previous record of 24.48 billion from January 27, 2021.