Tariffs crush hopes for a rebound in U.S. stocks, with the Dow Jones Industrial Average plummeting over 2,000 points during the session, the S&P erasing more than 4% of its gains and Apple dropping 11% from its daily high

U.S. stocks surged sharply at one point due to optimistic expectations for trade negotiations, but White House officials stated that there would be no tariff exemptions implemented in the near future and confirmed that high tariffs are imminent, leading to a reversal in market sentiment. The U.S. stock market experienced another "roller coaster" decline, with the market capitalization of the seven major U.S. tech stocks dropping over $5 trillion from their peak. Expectations of an economic recession pressured oil prices, while safe-haven sentiment once again strengthened the yen and Swiss franc.

U.S. Treasury Secretary Mnuchin stated that up to 70 countries are seeking negotiations. According to the Global Times, Mnuchin mentioned that discussions are ongoing regarding which regions to prioritize for tariff agreements, and revealed that U.S. President Trump will participate in the negotiations. Hopes for a trade agreement boosted U.S. stocks significantly in early trading on Tuesday.

However, subsequent news sharply deteriorated the recently improved risk appetite. During the midday briefing, the White House Press Secretary mentioned that the U.S. would impose high tariffs on other countries this Wednesday, which was later confirmed by the White House to the media; according to CCTV, U.S. Trade Representative Lighthizer stated that Trump has made it clear that there will be no tariff exemptions in the near future; according to Xinhua News Agency, Canada announced that its reciprocal tariffs on U.S. automobiles would also take effect on Wednesday.

The tariff war among major economies is escalating, and recession warnings are sounding again, causing U.S. stocks to accelerate their decline in the afternoon session, with all three major indices turning negative by the end of the day. When the indices hit their daily lows, the Dow Jones Industrial Average plummeted over 2,300 points from its earlier high, while the S&P 500 and Nasdaq, which had risen over 4% in the morning, fell by 3% and nearly 3.5%, respectively. High tariffs are expected to impact key supply chain regions for companies, with Apple's stock dropping 11% from its daily high by the end of the session.

The U.S. Treasury market is still undergoing "de-leveraging, seeking cash," with the yield on the 10-year U.S. Treasury bond rising for two consecutive days. The tariff tensions have accelerated the sell-off of corporate bonds, with credit spreads reaching 472 basis points, just a step away from the dangerous threshold of 500 basis points.

The Bloomberg Commodity Index plummeted during the day, with WTI crude oil prices falling back below $60. Oil prices have dropped for four consecutive days, hitting a four-year low, and at one point fell over 4%. Spot gold turned to decline during the session, failing to rebound; silver futures rose over 3% before turning to decline; copper futures rose over 4% before briefly dropping over 2%.

The U.S. stock market experienced a thrilling day on Tuesday, with all three major indices rising sharply in the morning, but then quickly evaporating their gains and turning to decline due to tariff news. The Dow Jones Industrial Average plummeted over 2,000 points from its high during the session, ultimately falling 0.8%, about 300 points; the S&P 500 erased more than 4% of its gains, closing down 1.6%; the Nasdaq, which had risen over 4% in the morning, ultimately closed down 2.2%. Tech giant Apple saw its stock price drop 11% after hitting a high in the morning, ultimately closing down 5%.

U.S. three major stock indices:

• The S&P 500 index closed down 79.48 points, a decline of 1.57%, at 4982.77 points

• The Dow Jones Industrial Average closed down 320.01 points, a decrease of 0.84%, at 37,645.59 points.

• The Nasdaq Composite Index closed down 335.35 points, a decrease of 2.15%, at 15,267.91 points. The Nasdaq 100 Index closed down 340.28 points, a decrease of 1.95%, at 17,090.40 points.

• The Russell 2000 Index closed down 2.73%, at 1,760.71 points.

• The VIX index closed up over 11%, at 56.32, marking the highest closing price since March 2020.

U.S. stock sector ETFs all closed down:

• U.S. solar energy fell nearly 6%, biotechnology index ETF and global airline industry ETF closed down 3.61%.

• Semiconductor ETF, consumer discretionary ETF, energy sector ETF, and technology sector ETF all closed down over 2%.

The market value of the "Magnificent Seven" has fallen by over $5 trillion from its peak:

• The index of the seven tech giants in the U.S. (Magnificent 7) fell over 2.3%, fluctuating downward throughout the day, with the decline narrowing towards the close.

• Apple closed down 4.98%, with a market value evaporating by about $1.5 trillion compared to its historical peak price in December 2024.

• Tesla fell 4.9%, Amazon fell 2.62%, Google A fell 1.4%, NVIDIA fell 1.37%, Meta Platforms fell 1.12%, Microsoft fell 0.68%.

Chip stocks:

• The Philadelphia Semiconductor Index closed down 3.57%, at 3,562.94 points.

• AMD closed down 6.49%, and TSMC ADR fell 3.28%.

AI concept stocks:

• Advanced Micro Devices fell 3.91%, Palantir closed down 0.67%, while Applovin slightly rose 1.32%.

Chinese concept stocks:

• The Nasdaq Golden Dragon China Index closed down 5.05%, at 6,198.18 points.

• Popular Chinese concept stocks: Xiaomi ADR initially rose 2.3%, NetEase fell 1.4%, JD fell 2.6%, Tencent ADR fell 3.3%, Baidu fell 4%, Bilibili fell 5.5%, Pinduoduo fell 6.1%, Alibaba fell 6.3% Chinese concept stocks related to automobiles, such as Nio, XPeng, and Li Auto, fell more than 7%.

• The China concept ETF KWEB fell 3.9%, CQQQ fell 3.4%, while YANG rose 4.9%.

Other key stocks:

• Berkshire Hathaway Class B shares, owned by Warren Buffett, rose 0.46%.

• The "Trump Tariff Losers" index fell 5.56%, continuing to fluctuate downward throughout the day. All constituent stocks suffered losses, with HELE down 14.08%, Harley-Davidson down 8.6%, Best Buy down 8.26%, and Mattel down 6.91%.

• Trump signed an executive order aimed at boosting coal mining and promoting electricity development. As a result, coal stock Peabody rose more than 20% in after-hours trading.

European stock markets rebounded nearly 3% on Tuesday, with stock indices in various European countries showing different degrees of increase, and the indices of the five major European economies at least rose more than 2%. The financial and tourism sectors in Europe performed prominently, with an increase close to 4%.

Pan-European stocks:

• The European STOXX 600 index closed up 2.72%, marking the best single-day performance since November 2022, at 486.91 points, after four consecutive trading days of declines, which was the worst for the same period since 2020.

• The Eurozone STOXX 50 index closed up 2.52%, at 4773.65 points.

• The FTSE All-World 300 index closed up 2.68%, at 1936.06 points.

National stock indices:

• Stock indices in various European countries showed different degrees of increase, with the indices of Germany, France, Italy, the UK, and the Netherlands rising more than 2%.

Sectors and individual stocks:

• In terms of sectors, the STOXX 600 Financial Services index rose 3.89%, the Travel and Leisure index rose 3.85%, and the Industrial Products and Services index rose 3.59%.

• Among Eurozone blue chips, payment giant Adyen rose 6.03%, Safran rose 5.02%, and Spanish bank Santander and Deutsche Börse Group rose nearly 5%.

• Stellantis, Eni, Mercedes-Benz Group, and BMW closed down 0.84%-2.09%.

The U.S. Treasury market also experienced fluctuations, with the yield on the 10-year U.S. Treasury rising for two consecutive days, while the two-year yield briefly plunged nearly 20 basis points during the day.

U.S. Treasuries:

• At the New York close, the yield on the 10-year Treasury rose 5.55 basis points, at 4.2390%.

• The yield on the two-year Treasury fell 9 basis points, at 3.6678%, having briefly risen to 3.86%, refreshing the day's high.

European bonds:

• In the European market's late trading, the yield on Germany's 10-year government bonds rose by 1.8 basis points to 2.631%, trading within a range of 2.575%-2.681% during the day.

• The yield on 2-year German bonds increased by 5.7 basis points to 1.835%, trading within a range of 1.785%-1.880% during the day, remaining in an upward trend throughout the day.

The US dollar index halted its two-day winning streak, with safe-haven demand driving the appreciation of the yen and Swiss franc. The dollar fell 1.09% against the yen, with the yen appreciating over 200 points during the day. The dollar dropped 1.25% against the Swiss franc, reported at 0.8483. The offshore yuan approached 7.43 during trading.

The US dollar index fell about 0.3%:

• In late New York trading, the ICE US dollar index fell by 0.29% to 102.966 points, trading within a range of 103.441-102.779 points, experiencing multiple "big ups and downs" during the day.
• The Bloomberg US dollar index fell by 0.23% to 1268.60 points, trading within a range of 1272.12-1264.91 points, remaining in a downward trend for most of the day, overall showing a W-shaped pattern.

Swiss franc strengthens:

• The dollar fell 1.25% against the Swiss franc, reported at 0.8483; the euro fell 1.00% against the Swiss franc, reported at 0.92861.

Yen appreciates over 200 points:

• In late New York trading, the dollar fell 1.09% against the yen, reported at 146.23 yen, trading within a range of 148.12-145.97 yen during the day.
• The euro fell 0.68% against the yen, reported at 160.21 yen; the pound fell 0.71% against the yen, reported at 186.828 yen.

Offshore yuan:

• In late New York trading, the offshore yuan (CNH) against the dollar was reported at 7.4257 yuan at 04:59 Beijing time, down 807 points from Monday's New York close, trading overall within a range of 7.3366-7.4290 yuan during the day.

Cryptocurrency:

• Bitcoin briefly tested above $80,000 before sliding again, dropping over $5,000 and falling below the $78,000 mark.

The Bloomberg Commodity Index plummeted during the day, with crude oil falling for the fourth consecutive day, hitting a four-year low, and at one point dropping over 4%, with WTI crude oil prices falling back below $60.

Crude oil:

• WTI May crude oil futures closed down $1.12, a decline of over 1.84%, reported at $59.58 per barrel, marking a new low since April 12, 2021.
• Brent June crude oil futures closed down $1.39, a drop of over 2.16%, reported at $62.82 per barrel.

Natural Gas:

• NYMEX May natural gas futures fell nearly 5.20%, closing at $3.4650 per million British thermal units.

Spot gold failed to rebound, retreating below the psychological level of $3000. Copper rose over 4% during the session but later turned to a decline of over 2%.

Gold:

• In New York's late trading, spot gold fell 0.05%, closing at $2981.66 per ounce, showing a pattern of rising and then falling, briefly recovering to $3022.73.

• COMEX gold futures rose 0.75%, closing at $2996.00 per ounce.

Silver:

• In New York's late trading, spot silver fell 0.95%, closing at $29.7982 per ounce.
• COMEX silver futures rose 0.22%, closing at $29.670 per ounce.

Other Metals:

• In New York's late trading, COMEX copper futures fell 2.03%, closing at $4.1010 per pound.

• LME copper futures closed down $76, at $8656 per ton. LME tin futures closed down $1326, at $32603 per ton.
• LME aluminum futures closed down $22, at $2349 per ton. LME zinc futures closed down $52, at $2563 per ton