讀後心得

U.S. stocks plummeted on the 4th, with the Dow Jones Industrial Average falling by 2,231.07 points, a decline of 5.5%, once again dipping below 40,000 points. This wave of market turmoil was influenced by U.S. President Trump’s tariff policies, as China announced a 34% retaliatory tariff on U.S. goods, escalating trade tensions and causing panic among investors. The S&P 500 and Nasdaq indices also dropped by 5.97% and 5.82%, respectively. Well-known tech stocks such as Apple, NVIDIA, and Tesla were severely impacted, each falling by more than 7%. Investors turned to the bond market for safety, driving bond prices up and yields down. The market volatility index soared above 40, indicating heightened panic sentiment.

The Dow Jones Industrial Average fell 2,231.07 points on the 4th. The tariff policy of the U.S. President has impacted global markets, with China announcing a 34% retaliatory tariff on all U.S. imports. The escalation of the trade war has raised concerns among investors, triggering a recession alarm in the global financial markets, and inducing panic among investors. The U.S. stock market continued to decline on the 4th, with all three major indexes opening lower and each dropping more than 5%. The Dow Jones Industrial Average plummeted by 2,231.07 points, falling below 40,000 for the first time since last August. TSMC ADR also fell by 6.72%.

Following a decline of 1,679 points on the 3rd, the Dow continued to plummet, dropping 2,231.07 points on the 4th, a decrease of 5.5%, marking the largest drop since the pandemic in June 2020. The S&P 500 index fell 4.84% on Thursday and dropped another 5.97% on Friday, representing the largest decline since March 2020, down over 17% from recent highs, with a market value evaporating by $5 trillion in just two days. The Nasdaq index fell nearly 6% on Thursday and 5.82% on Friday. The Philadelphia Semiconductor Index experienced a drop of 7.6%.

Trump's tariff policy has severely impacted technology stocks, with iPhone manufacturer Apple falling by 7.29%, bringing its weekly decline to 13.27%. AI leader NVIDIA dropped by 7.36%, while electric vehicle giant Tesla fell by 10.42%. These three companies have significant business operations in China and have been severely hit by the retaliatory tariffs from Beijing. TSMC ADR plunged 6.72%, closing at $146.80.

In addition to technology stocks, Boeing and Caterpillar, significant exporters to China, also led the declines in the Dow, falling 9.48% and 5.79%, respectively. As investors flocked to the bond market seeking safe-haven assets, bond prices rose and yields fell, with the yield on 10-year U.S. Treasury bonds dipping below 4%. The volatility index of the Chicago Options Exchange soared above 40, a level that typically only occurs during rapid market downturns.

On the 4th, the Chinese Ministry of Commerce stated that it would impose a 34% tariff on all U.S. products and has included several companies on the so-called "unreliable entities list," claiming that these companies have violated market rules or contractual commitments. Additionally, China has launched an antitrust investigation into chemical industry company DuPont, whose stock price dropped by 12.75%. Trump fiercely condemned China's retaliatory actions on social media on the 4th, reiterating that his economic policy 'will never change.'

At the close of the U.S. stock market on the 4th, the Dow Jones Industrial Average ended down 2,231.07 points, or 5.50%, closing at 38,314.86 points. The S&P 500 index fell by 322.44 points, or 5.97%, closing at 5,074.08 points. The tech-heavy Nasdaq index dropped by 962.82 points, or 5.82%, closing at 15,587.79 points. The Philadelphia Semiconductor Index fell by 296.030 points, or 7.60%, closing at 3,597.655 points.