After Asian stock markets and cryptocurrency markets experienced a "Black Monday" yesterday, foreign media reported last night that the Trump administration might suspend reciprocal tariffs for 90 days, which momentarily stimulated a strong market rebound and pushed Bitcoin to break through $80,000.
However, the White House quickly denied this as fake news, causing market confidence to instantly collapse, with stocks and Bitcoin plummeting. Subsequently, US President Trump again issued a tough threat to China, stating that if China does not withdraw retaliatory tariffs (Beijing announced a 34% retaliatory tariff last night), the United States will raise existing tariff rates to 50% on the 9th, once again triggering a market shock.
The Dow Jones index plunged over 1,700 points intraday, and although the decline narrowed at the close, the S&P 500 index recorded its worst three-day performance since the outbreak of the pandemic in 2020. Meanwhile, the EU raised the banner of negotiation priority but also prepared counter-tariffs, with global trade war clouds looming.
Bitcoin Breaks Through $81,000 Before Falling Back
The cryptocurrency market was also affected by the Trump tariff suspension fake news last night, with Bitcoin reaching a high of $81,213 before quickly falling back after the White House's clarification. As of 9:30 AM Taipei time on April 8th, Bitcoin was priced around $79,670, and Ethereum around $1,574, with the sustainability of the rebound yet to be observed.
Overall, the current market trend highlights the high uncertainty of the global economic environment, bringing enormous pressure to risk markets. Investors must be more cautious when assessing risks and opportunities, closely monitoring subsequent policy developments and economic data changes.
US Stocks Show Mixed Performance, NVIDIA Rebounds
On the US stock front, Apple (AAPL-US) closed at $181.46, a sharp drop of 3.67%. The company's stock price has cumulatively fallen 19% over the past three trading days, with market value evaporating nearly $640 billion. Market rumors suggest that to replenish inventory before potential tariffs take effect on the 9th, Apple has launched an emergency logistics plan, using cargo planes to transport large quantities of iPhones and other products from India and China to the United States.
NVIDIA (NVDA) closed at $97.64, rebounding 3.53%. Bernstein analysts are optimistic about NVIDIA, reaffirming an "outperform" rating with a $185 target price, expecting its AI server products might be exempt from the latest tariffs under the USMCA.
The Dow Jones Industrial Average plunged 1,703 points intraday and ultimately closed down 349.26 points, or 0.91%, at 37,965.6 points
The S&P 500 index fell 11.83 points, or 0.23%, to 5,062.25 points, with a cumulative decline of over 10% in the past three days, the most severe drop since the market crash at the beginning of the pandemic in 2020
Tech stocks showed resilience with bottom-fishing buying, and the Nasdaq Composite index rose 15.48 points, or 0.1%, to 15,603.26 points
Benefiting from a strong rebound in semiconductor stocks, the Philadelphia Semiconductor Index surged 97.29 points, or 2.70%, closing at 3,694.95 points
Fed Closed-Door Meeting Adds Suspense, Rate Cut Expectations Surge
As the market was restless over tariff news, the Fed suddenly held an unannounced closed-door board meeting last night. Although the specific discussion content has not been disclosed, this rare action at such a sensitive time has intensified market tension and speculation.
According to the CME FedWatch tool, the market's expectation of the Fed potentially cutting rates as early as May has risen from 14% a week ago to 30.7%. This reflects the market's strong expectation that the Fed will adopt a more dovish stance to support the economy under the shadow of trade war and potential economic slowdown.
EU Adopts "Negotiate While Fighting" Strategy, Proposes Zero-for-Zero Tariffs
Facing US tariff pressure, the EU reached a consensus at a trade ministers' meeting of 27 countries in Luxembourg to prioritize resolving trade disputes through consultation. EU Trade Commissioner Maros Sefcovic stated that they have proposed a "zero-for-zero" tariff negotiation for industrial products to the US, meaning mutual complete exemption of industrial goods tariffs.
However, the EU also clearly stated that it will not wait indefinitely. Sefcovic elaborated on three EU positions:
1. Acknowledging the importance of cooperation with the US in strategic areas such as addressing overcapacity in non-market economies, semiconductor competition, and critical raw material supply
2. Candidly admitting that negotiations with the US will be protracted and are currently only in the initial stages, as the US views tariffs as "corrective measures" rather than negotiation chips
3. While seeking open negotiations, adopting a "three-track" strategy: defending interests through countermeasures, diversifying markets through new trade agreements, and preventing harmful trade diversion effects
In terms of specific actions, in response to previous US tariffs on steel and aluminum products, the EU plans to implement the first wave of retaliatory tariffs on April 15th, with the list submitted to member states for voting on the 9th. The second wave of counter-tariffs is expected to be launched on May 15th.
The EU's current strategy is clearly "negotiation priority, negotiate while fighting" and actively seeking to diversify trade partners. Sefcovic named India, Indonesia, Thailand, the Philippines, and Gulf countries, urging acceleration of existing free trade agreement negotiations. The EU Commission President figuratively stated that the EU will focus "like a laser beam" on 83% of global trade outside the US.
Simultaneously, the EU is highly vigilant about trade diversion risks, especially the potential massive influx of Chinese products into the EU market due to US tariffs. Sefcovic's recent visit to China focused on addressing trade imbalances, overcapacity, market access, and Chinese investments in Europe.
Welcome to join BlockBeats official community:
Telegram Subscription Group: https://t.me/theblockbeats
Telegram Discussion Group: https://t.me/BlockBeats_App
Twitter Official Account: https://twitter.com/BlockBeatsAsia
