讀後心得

The Dow Jones Industrial Average fell sharply by 2,231.07 points on the 4th, impacted by Trump's tariff policies, with the escalation of the trade war triggering panic in the market. The S&P 500 and Nasdaq indexes also declined by more than 5%. As investors fled to the bond market, the yield on 10-year U.S. Treasury bonds fell below 4%. Tech stocks such as Apple and NVIDIA suffered heavy losses, while TSMC's ADR dropped by 6.72%. China announced a 34% tariff on all U.S. imports, further exacerbating market anxiety. Overall, the market has lost $5 trillion in value within two days.

The Dow Jones Industrial Average dropped 2,231.07 points on the 4th. The U.S. presidential tariff policies are affecting global markets, with China imposing a retaliatory tariff of 34% on all U.S. imported goods. The escalation of the trade war has raised concerns among investors, triggering recession alarms in global financial markets and a surge in panic among investors. The U.S. stock market continued its steep decline on the 4th, with all three major indices opening lower and dropping over 5%. The Dow Jones Industrial Average fell sharply by 2,231.07 points, crossing below 40,000 points for the first time since last August. TSMC's ADR also dropped by 6.72%. After a decline of 1,679 points on the 3rd, the Dow fell again by 2,231.07 points on the 4th, marking a 5.5% drop, the largest since June 2020. The S&P 500 index fell by 4.84% on Thursday and dropped another 5.97% on Friday, recording the largest decline since March 2020, down more than 17% from recent highs, with a market value shrink 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 decreased by 7.6%.

Trump's tariff policies have had a significant impact on tech stocks, with iPhone manufacturer Apple falling by 7.29% and a total drop of 13.27% this week. AI leader NVIDIA dropped 7.36%, while major electric vehicle manufacturer Tesla fell by 10.42%. These three companies have a large portion of their business in China and have been severely impacted by Beijing's retaliatory tariffs. TSMC's ADR fell by 6.72% to close at $146.80. Besides tech stocks, Boeing and Caterpillar, which export to China, dropped by 9.48% and 5.79% respectively, leading the declines in the Dow index.

Investors flocked to the bond market seeking safety, resulting in rising bond prices and declining yields, with the yield on 10-year U.S. Treasury bonds falling below 4%. The Chicago Board Options Exchange Volatility Index, known as the Wall Street Fear Index, soared above 40, a level typically seen only during rapid market declines. The Chinese Ministry of Commerce stated that it would impose a 34% tariff on all U.S. products and include some companies on a so-called "unreliable entity list," accusing them of violating market rules or contract commitments. Additionally, Chinese authorities launched an antitrust investigation against a chemical industry company, which saw its stock price drop by 12.75%. Trump strongly condemned China's retaliatory measures and emphasized that his economic policies will not change.

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