4:15pm: Global trade fears trigger $2.5T market selloff
Wall Street ended the week with sharp losses across all major indices, driven by escalating trade tensions and economic uncertainty.
The Dow plunged 2,231 points (-5.5%) to 38,315, the S&P 500 dropped 322 points (-6%) to 5,074, and the Nasdaq fell 963 points (-5.8%) to 15,588, edging closer to bear market territory.
The small cap Russell 2000 index slid 86 points (-4.5%) to 1,824, firmly in a bear market.
Investor fears were fueled by President Trump’s new tariffs, erasing $2.5 trillion in market value, while concerns over Federal Reserve policy and inflation overshadowed a strong jobs report.
Tech stocks, including Tesla and Nvidia, were among the hardest hit, and small caps continued their decline amid rising debt pressures.
3:26pm: Friday's headlines
China has imposed retaliatory tariffs of 34% on US goods, marking the most serious escalation yet in a trade war with president Donald Trump that has rattled global markets.
The US economy added 228,000 jobs in March, significantly exceeding economists’ expectations of 137,000.
Federal Reserve Chair Jerome Powell issued a stark warning about the economic impact of recently announced tariffs, saying the impact would likely be larger than expected, fueling inflationary pressures and slowing economic growth.
President Trump has signed an executive order extending TikTok’s operation in the US for 75 days.
2:32pm: Chinese stocks fall
Chinese stocks experienced significant declines on Friday as trade tensions between the US and China escalated.
Alibaba Group (NYSE:BABA) shares fell 10.9% to US$115 while PDD Holdings Inc (NASDAQ:PDD) shed 9.5% at about US$103.
Baidu.com (NASDAQ:BIDU) stock was down 10.2% at US$80 and JD.com Inc (NASDAQ:JD) was down 9.3% at US$36.
The reciprocal tariffs have shaken investor sentiment, especially given their impact on around $500 billion in trade between the two countries.
2:02pm: Klarna, StubHub delay IPOs
Klarna and online ticket marketplace StubHub have both reportedly paused their initial public offering (IPO) plans due to market turbulence, according to The Wall Street Journal.
Klarna, which filed publicly for a US PO last month, had aimed to raise at least $1 billion and sought a valuation exceeding $15 billion, Bloomberg reported. The company had planned to list on the New York Stock Exchange under the ticker symbol KLAR.
StubHub was also preparing to go public on the NYSE under the ticker STUB, but has reportedly shelved its IPO due to uncertainty stemming from President Trump’s tariff plan.
1:03pm: Stocks get no relief from Powell
Stock markets were still deep in the red starting Friday afternoon, having been given no signs of optimism on Fed chair Powell's earlier comments.
The Dow Jones Industrial Average down 4.1%, the S&P 500 dropping 4.9%, and the tech-heavy Nasdaq Composite also falling 4.9%, amid intensifying fears of a global trade war.
"The echoes of reciprocal tariffs are reverberating through markets, raising expectations for Fed cuts and driving down yields," Wells Fargo analysts wrote.
"A lot can happen in the coming days and weeks, and it remains to be seen which tariffs will remain in their current form and which may be negotiated away. But the downside risks to the economy are real."
12:20pm: Trump calls for immediate interest rate cut
Powell's remarks came just after President Donald Trump on Friday morning called for an immediate interest rate cut to counteract the economic impact.
“Cut interest rates, Jerome, and stop playing politics!” Trump wrote on social media just minutes after Powell’s comments. The president, who has frequently criticized Powell for acting too slowly on rate adjustments, added, “It would be a PERFECT time for Powell to cut interest rates.”
Despite Trump’s demands, Powell signaled that the Fed is not prepared to make an immediate policy shift. “It is too soon to determine the appropriate policy path,” Powell said, emphasizing that the central bank remains focused on ensuring inflation does not become entrenched.
11:50am: Powell speaks
Federal Reserve Chair Jerome Powell issued a stark warning on Friday, stating that the economic impact of recently announced tariffs would likely be larger than expected, fueling inflationary pressures and slowing economic growth.
Powell’s remarks come as financial markets react negatively, with the Nasdaq falling 4% following his comments.
“Higher tariffs will be working their way through our economy and are likely to raise inflation in incoming quarters,” Powell said. He cautioned that the resulting price hikes could lead to ongoing inflation, rather than a temporary spike, which could complicate the central bank’s efforts to manage price stability.
The Fed chair also noted that while the Federal Reserve does not maintain a probability forecast of a recession, external forecasts have indicated rising risks. “We face risks for higher unemployment and higher inflation—that’s difficult for a central bank,” Powell stated, hinting at the growing concerns over stagflation, a combination of high inflation and slowing growth.
11:12am: JPMorgan raises recession risk
JPMorgan has raised its forecast for the probability of a US and global recession in 2025 to 60%, up from 40%, following the announcement of sweeping tariffs by US president Donald Trump.
Analysts warned that the tariffs are expected to cost US households approximately $700 billion, equating to a de facto tax hike of 2.4% of GDP.
"Disruptive US policies has been recognized as the biggest risk to the global outlook all year," they wrote.
"The effect of this tax hike is likely to be magnified through retaliation, a slide in US business sentiment, and supply chain disruptions.”
10:45am: Will the Fed cut rates today?
Expectations for an April rate cut by the Fed have surged in the past 24 hours, with interest rate futures now pricing in a more than 40% probability—up from 18% before Wednesday’s tariff announcement.
"Could Jerome Powell fuel expectations of a rate cut even more later today? That will be the focus," commented Kathleen Brooks of XTB.
"If stocks continue to decline, then this could be Powell’s ‘whatever it takes’ moment to help prop up US markets."
10:25am: China retaliates
China has imposed retaliatory tariffs of 34% on US goods, marking the most serious escalation yet in a trade war with President Donald Trump that has rattled global markets.
The move comes in response to Washington’s decision to raise tariffs on Chinese imports to 54%, a step that Beijing condemned as a violation of World Trade Organization (WTO) rules.
Alongside the tariffs, China has filed a formal complaint with the WTO, arguing that the new U.S. measures undermine global trade norms. The WTO Secretariat confirmed receipt of China’s request for consultations, the first step in a dispute resolution process that could ultimately lead to adjudication.
If no agreement is reached within 60 days, China could seek a formal ruling from the WTO’s Dispute Settlement Body.
10:10am: Copper dives
Copper prices continued to fall sharply on Friday amid heightened global economic uncertainty and escalating trade tensions between the United States and China.
Copper prices on New York’s COMEX fell 6.6% to $4.51 per pound on Friday morning.
The COMEX is down almost 12% over the past five days after reaching an all-time high last week.
9:46am: Nasdaq in bear territory
US stocks opened sharply lower on Friday, with the Nasdaq plunging into a bear market as fears over tightening monetary policy and weaker economic data rattled investors.
The tech-heavy Nasdaq dropped 3%, or 494 points, to 16,057, extending its losses to over 20% from its recent peak—a key threshold for a bear market. Growth stocks bore the brunt of the selloff as concerns over higher interest rates continued to weigh on valuations.
The broader S&P 500 followed suit, falling 2.8% to 5,245, with all major sectors trading in negative territory. The Dow Jones Industrial Average shed 2.4%, or 989 points, to 39,557.
Fresh labor market data did little to ease investor concerns. U.S. payrolls grew by 228,000 in March, while the unemployment rate ticked up slightly to 4.15%. However, downward revisions to prior months signaled a potential slowdown. Meanwhile, average hourly earnings climbed 3.8% over the past year, outpacing inflation and sustaining consumer spending.
Health care remained a bright spot, adding 54,000 jobs in March, while retail employment increased, partly due to the return of workers from a strike. Federal government employment declined, a trend expected to continue.
"Investors may find some solace here but most likely, this employment report will be overshadowed by the tension bubbling up in global trade, particularly with China," said Jeffrey Roach, Chief Economist for LPL Financial.
"Investors will hopefully get some calming words from Chair Powell when he speaks later today. The Fed’s job got a lot more complex as inflation is not yet under control.
"Trade policy could become the catalyst which pushes the economy into recession."
8:59am: Jobs come in hot
The US economy added 228,000 jobs in March, surpassing expectations of 137,000, despite federal workforce cuts.
The unemployment rate rose to 4.2%, slightly above the expected 4.1%.
February's job gains were revised down from 140,000 to 116,000.
8am: Wall Street stocks set fall more
US shares are expected to open lower on Friday, building on Thursday's steep losses, as the potential impact of President Donald Trump's shock tariffs continues to reverberate across global markets.
Already, China has retaliated with a tariff on US goods - sending global markets lower.
According to state news outlet Xinhua, China will impose a 34% tariff on all US imports from 10 April, retaliating against new US duties introduced by the Trump administration. Beijing urged the US to cancel its unilateral measures and criticised the move as a violation of international trade rules.
Xinhua noted that the increased tariffs, which raise total US duties on Chinese goods to 54%, threaten its interests and global economic stability.
Dow Jones futures are down 3.4%, while those for the S&P 500 are also pointing to a 3.4% decline and the tech-heavy Nasdaq 100 is set to fall 3.7%.
The S&P posted its worst day in nearly five years yesterday after Trump unveiled the tariffs, slapping a 10% blanked tariff around the world, with higher levies for some trading partners, including 20% import tax on all goods from the European Union, 24% on Japan, 34% on China and some, like Vietnam, even higher.
The Dow Jones closed 1,679 points (-4%) down at 40,546, while the S&P 500 fell 274 points (-4.8%) to 5,397. The Nasdaq suffered the steepest decline, plummeting 1,050 points (-6%) to 16,551, as technology stocks bore the brunt of the selloff.
"The last 24 hours have been truly historic for markets, as the impact of the US reciprocal tariffs cascaded across different asset classes, with no sign of letting up overnight," Commented Deutsche Bank's Jim Reid.
"In terms of what happens now, the big question is how the US’s trading partners might retaliate, as that will play a huge role in determining what the overall economic and market impact will be."
Other markets also continued lower this morning, with Japan's Nikkei falling 2.75% and the Hang Seng in Hong Kong down 1.52%, while in Europe the UK's FTSE 100 is currently down 3.7% and Germany's DAX 5.2% lower.
Attention is now turning to March's Non-Farm Payrolls report, which is released at 8:30am ET.
US job growth is expected to have slowed in March, partly due to major cuts in public sector employment as the federal government aims to reduce spending. Businesses have also been cautious about hiring because of ongoing import tariffs affecting economic stability.
Economists surveyed by Reuters predict nonfarm payrolls rose by 135,000 in March, down from 151,000 in February and below the six-month average of 190,000. The unemployment rate is projected to hold steady at 4.1%.
"Ahead of today’s Non-Farm Payrolls release, it is noteworthy that US job cuts reported by Challenger rose sharply in March, reaching 275,000 for the month, surpassing the highs seen during both the dot-com bubble and the Global Financial Crisis," said Tickmill Group's Patrick Munnelly.