April 8, 2025 — U.S. equity markets closed sharply lower Monday, capping off a volatile session marked by historic swings and rising investor anxiety over President Donald Trump’s intensifying trade war with China. The Dow Jones Industrial Average fell 349.26 points, or 0.91%, ending the session at 37,965.60 after swinging more than 2,500 points from its intraday low to high — the largest such swing on record.

The latest market sell-off extends a three-day losing streak triggered by Trump's surprise announcement of sweeping new tariffs on Chinese imports last week. On Monday, the president upped the ante, threatening to impose even higher tariffs if China did not reverse its recent 34% increase on U.S. goods. In a post on Truth Social, Trump warned of a 50% tariff hike effective April 9, unless Beijing backs down by Tuesday.

The S&P 500 slipped 0.23% to 5,062.25, while the Nasdaq Composite managed a modest gain of 0.10%, closing at 15,603.26, buoyed by a rebound in tech heavyweights like Nvidia and Palantir. Despite the slight lift in tech, all three major indexes faced substantial intraday losses, with the S&P 500 briefly dipping into bear market territory and the Nasdaq down more than 5% at one point.

Speculative rumors of a possible delay in the tariff rollout sparked a temporary rally midday, pushing the Dow briefly into positive territory. However, the White House quickly shut down those rumours, labelling them “fake news” and reaffirming that the tariffs will go into effect as scheduled. The rally faded soon after.

Trading activity surged across the board, with nearly 29 billion shares changing hands — the highest daily volume in over 18 years. That figure dwarfed Friday’s 26.77 billion and the 10-day average of just under 17 billion shares.

Investors are growing increasingly alarmed by the economic impact of the tariff battle, with fears mounting that the market downturn could spiral. Some hedge funds and large investors reportedly faced margin calls, forcing additional liquidation of risky assets. The CBOE Volatility Index — widely considered Wall Street’s fear gauge — surged to 60, a level typically associated with financial crises and bear markets.

Chris Rupkey, chief economist at FWDBONDS, warned that investor confidence is evaporating rapidly. “Margin calls are going out as we speak. For a third straight day, U.S. equity markets have delivered a resounding thumbs down to the White House’s tariff tactics,” he said.

Prominent investor Bill Ackman also weighed in on X (formerly Twitter), criticising Trump’s approach. “The president is losing the confidence of business leaders around the globe... This is not what we voted for,” Ackman wrote. He urged Trump to consider a timeout to reevaluate the strategy before lasting damage is done to the global economy.

Meanwhile, Apple shares slid 3.7% as the company continues to be caught in the crossfire of U.S.-China trade tensions. The tech giant has lost nearly $640 billion in market value over the past three trading days.

Despite pushback from Wall Street and calls for negotiation, Trump has remained firm. While over 50 countries have reportedly reached out to initiate talks, key officials, including trade advisor Peter Navarro, indicated that concessions like Vietnam’s offer to eliminate tariffs on U.S. goods may not go far enough.

As the standoff escalates, investors and businesses alike are bracing for what some are calling an “economic nuclear winter,” unless the administration alters course.


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