Day Traders Diary

3/4/25

The major averages were lower as President Donald Trump's tariffs on key trade partners like Mexico, Canada and China took effect with prompt retaliatory measures, triggering a global trade war and escalating fears of a national and global economic slowdown. The Dow Jones Industrial Average dropped 670 points, or 1.55% after dropping over 900 points earlier in the day. The Dow is now down over 1300 points in the last two days after a six hundred bump on Friday. The S&P 500 fell 71 points or 1.22% while the Nasdaq Composite fell 65 points.

Tuesday's drop came after Trump instituted 25% duties on Canada and Mexico that took effect at midnight. He also slapped an additional 10% tariff on Chinese goods. China retaliated with additional tariffs of up to 15% on some U.S. products, while Mexican President Claudia Sheinbaum said the U.S.′ southern neighbor would respond with tariffs and other measures that would be announced this weekend.

Stocks taking a hit from the tariffs battle include GM, and Ford down more than 4% and nearly 3%, respectively. Chipotle, which sources about half of its avocados from Mexico, dipped 2%. Target dropped 3% on earnings and comments from the CEO saying prices for some produce would be going higher in the next few days because of the tariffs.

One investment performing well the last month are bonds. The 10 year Treasury has dropped from 4.8% to 4.24% in the last month while the 2 Year Treasury has fallen from 4.36% to 3.98% in less than a month. Some of the weakness is due to concerns of economic growth.

The price of oil fell to a six month lower after OPEC + decided to increase production. Gld has steadily climbed on the weak dollar and trade tariffs. Bitcoin rebounded, up 2% after falling 2% this morning as much as 5% this morning.