Day Traders Diary

4/8/25

The major averages reversed course as a relief rally of 3% or more faded in the afternoon as investor anxiety returned ahead of President Donald Trump's next tariff deadline that will see a cumulative tariff of 104% slapped on China just after midnight. The Dow Jones Industrial Average dropped 320 points, or 0.84%, and closed at 37,645, bringing its four-day loss on tariff angst to more than 4,500 points. The S&P 500 declined 79 points or 1.57% to end at 4,982. The index was inches away from closing in a bear market, down nearly 19% from its February record, and it ended the session below 5,000 for the first time since April 2024. The Nasdaq Composite fell 335 points or 2.15%, ending at 15,267. The tech-heavy benchmark rose as much as 4.5% earlier in the day.

Stocks began the day higher with traders citing an oversold market as reason for the bounce. Investors were also encouraged by signs the U.S. would negotiate arrangements that would lower tariffs on major trading partners. Trump posted on Truth Social Tuesday that he had a "great call" with the acting president of South Korea, helping to boost sentiment. Treasury Secretary Scott Bessent also told CNBC on Tuesday that around 70 countries had approached the U.S. for tariff negotiations.

However, harsh criticism from China and a bad bond auction reversed the markets in the afternoon. Starting at midnight, a cumulative 104% tariff rate will be implemented on Chinese goods coming into the country.

The yield on the 10-year Treasury rose 12 basis points to 4.28%, while the 2-year Treasury yield was lower by 2 basis points to 3.71%.

Price of oil fell 3%, bitcoin was down 2% while gold was modestly higher.