Day Traders Diary

4/3/25

The major averages took a nosedive today with the S&P 500 back into correction territory, after President Donald Trump unveiled sweeping tariffs of at least 10% and even higher for some countries, raising the risks of a global trade war that hits the already sputtering U.S. economy. The Dow Jones Industrial Average fell 1679 points, or 3.98%. The S&P 500 fell 274 points or 4.8% while the Nasdaq fell 1050 points or 5.97%.

Shares of multinational companies tumbled. Chinese centric companies, Nike and Apple dropped 14% and 9%, respectively. Big sellers of imported goods were among the hardest hit as well. Five Below lost nearly 28%, Dollar Tree tumbled 13% and Gap dropped 20%. Tech stocks Nvidia fell 8% while Tesla dropped 5%.

Bonds had a good day. The 10-year Treasury yield dropped 15 basis points to 4.04%, touching lowest level since October. The 2-year Treasury yield shed 20 basis points to 3.704%.

Defensive stocks also performed well like the telecom and consumer staples like Coke, Pepsi and tobacco stocks.

In the commodity space, oil dropped 7%, bitcoin fell 4% while gold was down less than a percent.