{"id":19838,"date":"2025-04-03T05:34:13","date_gmt":"2025-04-03T05:34:13","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=19838"},"modified":"2025-04-03T05:34:13","modified_gmt":"2025-04-03T05:34:13","slug":"sp-500-tumbles-after-trumps-tariff-blitz","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/analysis\/sp-500-tumbles-after-trumps-tariff-blitz\/","title":{"rendered":"S&amp;P 500 Tumbles After Trump\u2019s Tariff Blitz"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/1_download-6-1024x559.png\" alt=\"\" class=\"wp-image-19840\" \/><\/figure>\n\n\n\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>S&amp;P 500 fell nearly 5% intraday to 5,443.45 before paring losses.<\/li>\n\n\n\n<li>New U.S. tariffs: 34% on China, 20% on EU, 32% on Taiwan, 24% on Japan, 46% on Vietnam.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>The S&amp;P 500 experienced a sharp reversal on Wednesday following U.S. President Donald Trump&#8217;s surprise announcement of sweeping <strong>tariffs against major global trade partners<\/strong>, triggering broad-based selling in equities. The benchmark index plunged from an intraday high of <strong>5,733.48<\/strong> to a low of <strong>5,443.45<\/strong>, before modestly recovering to close at <strong>5,519.13<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">&#39;Reciprocal&#39; tariffs: President Donald Trump announced sweeping duties that would erect new barriers around the US, reversing decades of trade liberalization  that have shaped the global order <a href=\"https:\/\/t.co\/SAZfee7iaA\">https:\/\/t.co\/SAZfee7iaA<\/a> <a href=\"https:\/\/t.co\/q3Ekw1hVl9\">pic.twitter.com\/q3Ekw1hVl9<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1907659326908674459?ref_src=twsrc%5Etfw\">April 3, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The chart reflects this dramatic shift: after a quiet consolidation phase, the index spiked higher in early trading\u2014only to be met with aggressive selling after the tariff announcement. The <strong>MACD (12,26,9)<\/strong> crossed below the signal line shortly after the peak, while the histogram widened sharply into negative territory, reinforcing the bearish turn.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Markets Reel From Tariff Surprise<\/h2>\n\n\n\n<p>Trump\u2019s televised reveal included <strong>tariff hikes of 34% on Chinese goods<\/strong>, <strong>20% on the European Union<\/strong>, and <strong>upwards of 46% on Vietnam<\/strong>, with Japan and Taiwan also targeted. The move sent shockwaves through global markets\u2014<strong><a href=\"https:\/\/t.co\/FzwNYeeTj4\">Asian stocks dropped 3%<\/a><\/strong>, <strong>European futures fell 1.7%<\/strong>, and <strong><a href=\"https:\/\/t.co\/7WhQfPYUWv\">Apple shares plunged 7% in after-hours trading<\/a><\/strong>.<\/p>\n\n\n\n<p>The new levies directly hit the <strong>tech supply chain<\/strong>, particularly in Asia, where many components for U.S. electronics are produced. <strong>Apple<\/strong>, <strong>Intel<\/strong>, and other major U.S. tech names are expected to face tighter margins and higher production costs.<\/p>\n\n\n\n<p>Analysts from several firms have already flagged the move as a potential <strong>recession trigger<\/strong>, reminiscent of the economic self-harm seen during the <strong><a href=\"https:\/\/www.cnbc.com\/2025\/02\/05\/how-smoot-hawley-tariff-sparked-the-mother-of-all-trade-wars.html\">Smoot-Hawley tariff era<\/a><\/strong> of the 1930s. U.S. consumer prices are forecast to rise sharply\u2014particularly for autos, where cost increases of <strong><a href=\"https:\/\/t.co\/d40BM3L3rd\">$6,000 to $10,000 per vehicle<\/a><\/strong> are expected.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Recession Fears Rising<\/h2>\n\n\n\n<p>Bond markets responded immediately, with <strong><a href=\"https:\/\/t.co\/jjocgNK5j0\">Treasury yields sinking to multi-month lows<\/a><\/strong>, as traders piled into safe havens. <strong>Fed funds futures are now pricing in 80 basis points of rate cuts<\/strong> by year-end\u2014even as inflation expectations rise. The Federal Reserve may face a difficult balancing act, especially if inflation spikes alongside declining growth.<\/p>\n\n\n\n<p>Despite White House claims that the tariffs are a negotiating tactic, uncertainty is already throttling long-term business confidence. Many firms are pausing capital expenditures until there is clarity on tariff permanence, while <strong><a href=\"https:\/\/t.co\/pyE5JuzmTD\">retaliatory trade measures from the EU and others appear imminent<\/a><\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The SP500 15-minute chart showcases a dramatic surge followed by a sharp correction. The index rallied strongly to a high of <strong>5733.48<\/strong>, supported by tight upward movement across short MAs (5,10,30), but faced an aggressive sell-off shortly after, plunging to a low of <strong>5443.45<\/strong>. This retracement was swift and heavy, as reflected in the steep decline on the MACD histogram and the bearish crossover.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/image-2-1024x450.jpg\" alt=\"\" class=\"wp-image-19839\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: SP500 slams the brakes after a rally\u2014correction kicks in, but bulls eye a recovery, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" title=\"\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>After hitting the low, the index began stabilizing and consolidating, hovering near <strong>5519.13<\/strong>. The MACD is attempting a recovery, with histogram bars shifting into green, indicating early signs of renewed buying interest, but the moving averages remain tilted downward\u2014suggesting caution in the near term.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Cautious Forecast<\/h2>\n\n\n\n<p>Technically, the S&amp;P 500&#8217;s breach below <strong>5,500<\/strong> suggests fragile sentiment and increased volatility in the sessions ahead. Should it fail to reclaim the <strong>5,600<\/strong> level soon, a deeper correction toward <strong>5,400 or below<\/strong> remains possible.<\/p>\n\n\n\n<p>Market participants are now bracing for additional headlines, policy responses, and economic fallout. The tariff shock has jolted risk sentiment\u2014and it&#8217;s likely only the beginning.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a>\u00a0and\u00a0<a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a>\u00a0now.<\/strong><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>S&amp;P 500 drops to 5,443.45 as Trump unveils steep global tariffs, sparking recession fears and market volatility. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":19840,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[11],"class_list":["post-19838","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-indices"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/19838","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=19838"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/19838\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/19840"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=19838"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=19838"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=19838"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}