讀後心得

The US stock market saw a sharp decline on the 4th, with the Dow Jones Industrial Average dropping by 2231.07 points, and the S&P 500 and Nasdaq indices falling by 5.97% and 5.82% respectively. This wave of decline was triggered by Trump's tariff policy, which escalated trade tensions between China and the US, with China imposing a 34% tariff on American products, leading to market panic, resulting in all three major indices falling by more than 5%. Technology stocks were heavily impacted, with Apple and Tesla declining by 7.29% and 10.42%, respectively. Investors flocked to the bond market for safety, causing bond prices to rise and yields to fall. The market volatility index soared above 40, indicating a rise in anxiety. The Dow finally closed at 38,314.86 points, while the S&P 500 and Nasdaq closed at 5,074.08 points and 15,587.79 points, respectively.

The Dow Jones Industrial Average fell by 2231.07 points on the 4th. The tariff policy of the U.S. President has impacted the global market, with China deciding to impose a 34% retaliatory tariff on all U.S. imports, thus fully escalating the trade war. Investors felt uneasy, and the global financial market warned of recession, leading to a rise in panic. The U.S. stock market continued to plummet on the 4th, with all three major indices opening lower and declining, each dropping more than 5%. The Dow Jones Industrial Average saw a significant drop of 2231.07 points, falling below 40,000 again since last August, and TSMC ADR also fell by 6.72%.

After dropping 1679 points on the 3rd, the Dow Jones Industrial Average plummeted again by 2231.07 points on the 4th, a decline of 5.5%, marking the largest drop since the pandemic in June 2020. The S&P 500 index fell by 4.84% on Thursday and then dropped another 5.97% on Friday, marking its largest decline since March 2020. It has now fallen over 17% from recent highs, with a market value loss of $5 trillion in just two days. The Nasdaq index fell nearly 6% on Thursday and dropped 5.82% on Friday, officially entering a bear market. The Philadelphia Semiconductor Index dropped 7.6%.

Trump's tariff policy has significantly impacted tech stocks, with the stock price of iPhone manufacturers falling 7.29%, accumulating a decline of 13.27% for the week. AI leader NVIDIA fell 7.36%, while electric vehicle manufacturer Tesla saw a drop of 10.42%. These three companies have substantial business operations in China and have been severely impacted by retaliatory tariffs from Beijing. TSMC ADR plunged 6.72%, closing at $146.80.

In addition to tech stocks, major exporters to China such as Boeing and Caterpillar led the Dow's decline, dropping 9.48% and 5.79%, respectively. As investors flocked to the bond market seeking safety, bond prices rose, and yields fell, with the yield on 10-year U.S. Treasury bonds dropping below 4%. The Chicago Board Options Exchange Volatility Index, known as Wall Street's fear index, soared above 40, a level that only occurs during rapid market declines.

On the 4th, China’s Ministry of Commerce announced it would impose a 34% tariff on all U.S. products and placed multiple companies on a "unreliable entity list," accusing them of violating market rules or contracts. China launched an antitrust investigation against a chemical industry company, resulting in a 12.75% drop in that company's stock price. Trump condemned China's retaliatory actions through social media on the 4th and insisted that his economic policies would not change.

As of the close on the 4th, the Dow Jones Industrial Average fell by 2231.07 points, a decrease of 5.50%, closing at 38314.86 points. The S&P 500 index dropped by 322.44 points, a decline of 5.97%, closing at 5074.08 points. The tech-heavy Nasdaq index fell by 962.82 points, a drop of 5.82%, closing at 15587.79 points. The Philadelphia Semiconductor Index dropped by 296.030 points, a decrease of 7.60%, closing at 3597.655 points.