On Monday, April 7, 2025, global financial markets experienced a significant downturn, reminiscent of the infamous Black Monday of 1987. This sharp decline was primarily triggered by President Donald Trump’s announcement of sweeping tariffs on imports from nearly 90 countries, including a 10% blanket levy and higher duties on exports from China, the European Union, Japan, and Vietnam.
United States: Major Indices and Companies Hit Hard
In the United States, the Dow Jones Industrial Average plunged by 3,910 points over two days. The S&P 500 and Nasdaq Composite also fell by nearly 6%, collectively erasing $6.6 trillion in market value.
Several major U.S. companies faced severe impacts:
-
Apple Inc. (AAPL): The stock price dropped to $177.19, reflecting a 5.94% decrease from the previous close.
-
Tesla Inc. (TSLA): Shares declined to $225.60, marking a 5.78% fall.
-
NVIDIA Corp. (NVDA): Despite the overall market downturn, NVIDIA’s stock saw a slight increase to $94.60, up by 0.31%.
-
Microsoft Corp. (MSFT): The stock decreased to $353.19, a 1.85% drop.
Asia: Japanese and South Korean Markets Plummet
Asian markets were not spared from the turmoil. Japan’s Nikkei 225 index suffered a 12.4% drop, its worst performance since 1987. In South Korea, the KOSPI index fell by 8.8%. For Hong Kong, please check our article.
Europe: Significant Declines Across Major Indices
European markets also faced substantial losses. The FTSE 100 in London declined by 4.38%, closing at 7,702.08. Germany’s DAX index fell over 6%, and France’s CAC 40 experienced similar declines.
Investor Sentiment and Economic Outlook
The aggressive tariff policies have heightened fears of a global recession. Economists and financial leaders, including JPMorgan CEO Jamie Dimon, have expressed concerns about the negative effects on consumer confidence, investment, corporate profits, and currency stability.
Despite attempts by policymakers to mitigate the impact, the market panic has overshadowed regulatory efforts. Major companies like Tesla suffered significant share price declines, and international policymakers are considering emergency measures to address the volatile financial outlook.
The events of April 7, 2025, underscore the profound impact that trade policies can have on global financial stability. As nations navigate these turbulent times, the emphasis remains on diplomatic negotiations to resolve trade disputes and restore investor confidence.
Damalion supports investment groups, and families to structure their investments throughout Luxembourg by default. Please contact your Damalion expert now.
External links are ownership of their respective owners and do not imply any economic link or interest with Damalion corporation. The information provided is for informational purposes only and does not constitute an offer or solicitation to buy or sell shares or securities of any type of investment vehicle. The content herein is not intended to serve as the basis for any investment decision, nor does it include specific investment recommendations. As such, this document does not constitute investment advice, counsel, or a solicitation to invest in any security. It should not be interpreted as an offer to sell, a subscription invitation, or a request to purchase or subscribe to any securities. Furthermore, no part of this document should form the foundation of or be relied upon in connection with any agreement, contract, or commitment of any kind. Damalion explicitly disclaims all liability for any direct or indirect loss or damage arising from: (i) reliance on the information provided herein, (ii) errors, omissions, or inaccuracies within this information, or (iii) actions taken based on this information.
