讀後心得

On the 4th, the US stock market experienced a significant decline, with the Dow Jones Industrial Average dropping by 2231.07 points, a decrease of 5.5%, falling below 40,000 points for the first time since August of last year, marking the largest decline since then. China announced a 34% tariff on US imports, escalating the trade war and causing panic among investors, with all three major indices falling over 5%. The S&P 500 index and the Nasdaq index also saw substantial declines, confirming entry into a bear market. Technology stocks were severely impacted, with Apple, NVIDIA, and Tesla all experiencing significant drops in their stock prices. Investors turned to the bond market for safety, leading to an increase in bond prices and a decrease in yields.

The Dow Jones Industrial Average dropped 2231.07 points on the 4th, reflecting the impact of the U.S. presidential tariff policy on the global market. China subsequently announced a 34% retaliatory tariff on all U.S. imports, triggering concerns among investors as the trade war escalated, and alarm bells for recession sounded in global financial markets, leading to a spread of panic among investors.

The U.S. stock market continued to suffer severe losses on the 4th, with all three major indices opening lower and falling by more than 5%. The plummet of 2231.07 points in the Dow Jones Industrial Average marked a re-breaking of the 40,000-point threshold, the first time it has done so since August of last year. Following a drop of 1679 points on the 3rd, the Dow again saw a significant decline of 5.5% on the 4th, the largest drop since the pandemic in June 2020.

• The S&P 500 index fell by 4.84% on Thursday and then by another 5.97% on Friday, having dropped more than 17% from its recent peak, with a market value decrease of $5 trillion in just two days.
• The NASDAQ index dropped nearly 6% on Thursday and fell 5.82% on Friday, officially entering a bear market, while the Philadelphia Semiconductor Index also dropped by 7.6%.

The tariff policy has severely impacted tech stocks, with iPhone manufacturer Apple dropping 7.29%, bringing the total decline for the week to 13.27%. Additionally, AI leader NVIDIA fell by 7.36%, while electric vehicle giant Tesla experienced a decline of up to 10.42%. These companies have substantial business operations in China and are among those most affected by the retaliatory tariffs, with TSMC's ADR also plunging by 6.72%.

Besides tech stocks, Boeing and Caterpillar, which heavily rely on exports to China, declined by 9.48% and 5.79%, respectively, dragging down the Dow's performance. As investors flocked to the bond market in search of safety, this led to a rise in bond prices and a drop in yields, with the yield on 10-year U.S. Treasuries falling below 4%.

The volatility index from the Chicago Options Exchange, known as the Wall Street Fear Index, sharply rose above 40, a level typically seen during rapid market declines. On the 4th, China's Ministry of Commerce announced a 34% tariff on all U.S. products and listed several companies on a "unreliable entity list," claiming these companies violated market rules.

China has launched an antitrust investigation into chemical company DuPont, causing its stock to drop by 12.75%. In this context, Trump vehemently condemned China's actions on social media on the 4th, reiterating that his economic policies "will not change."

As of the close on the 4th, the Dow Jones Industrial Average ended down 2231.07 points, or 5.50%, at 38314.86 points; the S&P 500 index fell by 322.44 points, or 5.97%, closing at 5074.08 points; the tech-heavy NASDAQ index dropped 962.82 points, or 5.82%, to finish at 15587.79 points; and the Philadelphia Semiconductor Index fell by 296.030 points, or 7.60%, closing at 3597.655 points.