Global Selloff Deepens, Oil Prices Tumble Amid Trump's Tariff Fallout - Global Markets Today While US Slept

On Thursday, April 3, U.S. markets experienced their steepest one-day losses in years, driven by President Trump’s tariff on U.S. imports, which sparked concerns of a global trade war and potential recession.

Investors fled to safer assets as countries like China and the EU threatened retaliation. Amid the market chaos, traders now expect multiple Federal Reserve rate cuts, with June seen as the likely starting point.

In economic data, U.S. initial jobless claims dropped by 6,000 to 219,000 for the week ending March 29, beating estimates of 225,000. The trade deficit narrowed to $122.7 billion in February, lower than the previous month’s $130.7 billion and the forecasted $123.5 billion. The ISM services PMI fell to 50.8 in March, down from 53.5 in February and below the expected 53.

Most S&P 500 sectors closed lower on Thursday, led by losses in consumer discretionary, energy, and tech stocks, while consumer staples bucked the trend and finished higher.

The Dow Jones Industrial Average slipped 3.98% to 40,545.93, the S&P 500 declined 4.84% to 5,396.52, and the Nasdaq Composite fell 5.97% to close at 16,550.61.

Asia Markets Today

• On Friday, Japan’s Nikkei 225 closed the session lower by 2.80% at 33,762.00, led by losses in the Paper and pulp, Transport, and Communication sectors.
• Japanese stocks plunged to their lowest since August as concerns over U.S. tariffs and a potential global recession triggered a selloff, particularly in banking stocks.
• Australia’s S&P/ASX 200 was down 2.44% and closed at 7,667.80,
• India’s Nifty 50 was down 1.48% to 22,905.15, and Nifty 500 declined 2.07% to 22,905.15.
• China Market is closed for the Ching Ming Festival holiday.

Eurozone at 05:45 AM ET

• The European STOXX 50 was down 2.36%.
• Germany’s DAX declined 2.30%.
• France’s CAC 40 fell 1.96%.
• U.K.’s FTSE 100 index traded lower by 1.83%.

Commodities at 05:45 AM ET

• Crude Oil WTI was trading lower by 3.72% at $64.50/bbl, and Brent was down 3.42% at $67.79/bbl. Oil prices fell toward their lowest since 2021, hit by Trump’s tariffs and OPEC+ output increases.
• Natural Gas slid 1.28% to $4.085.
• Gold was trading lower by 0.26% at $3,113.20, Silver was down 1.45% to $31.515, and Copper fell 2.30% to $4.7178.
• Gold prices slightly dipped on Friday but were set for their fifth consecutive weekly gain, driven by strong safe-haven demand amid Trump’s new trade tariffs. Despite profit-taking, gold remains close to record highs, with market focus on the U.S. nonfarm payrolls report.

U.S. Futures at 05:45 AM ET

Dow futures were down 0.93%, S&P 500 futures declined 0.70%, and Nasdaq 100 futures slid 0.48%.

Forex at 05:45 AM ET

• The U.S. dollar index rose 0.55% to 102.52, the USD/JPY rose 0.23% to 146.40, and the USD/AUD gained 1.97% to 1.6112.
• The U.S. dollar rose on Friday, recovering slightly ahead of the jobs report after a steep drop caused by President Trump’s tariffs.

Photo via Shutterstock