讀後心得

U.S. stocks dropped sharply on the 4th, with the Dow Jones Industrial Average plummeting by 2,231.07 points, a decline of 5.5%. Due to Trump's tariff policies stimulating an escalation in the trade war, China's tariff increases on American goods triggered panic among investors, signaling a recession alarm across global markets. The S&P 500 and Nasdaq indices also fell by 5.97% and 5.82% respectively, with technology stocks being severely affected, as companies like Apple, Nvidia, and Tesla saw significant declines in their stock prices. The bond market saw a rise in safe-haven demand, with the 10-year U.S. Treasury yield dropping below 4%, and market volatility increased significantly.

The Dow Jones Industrial Average fell sharply by 2231.07 points on the 4th. The U.S. President's tariff policy has impacted global markets, and China promptly announced a retaliatory tariff of 34% on all U.S. imports, escalating the trade war and creating unease among investors. The alarm for a downturn in the global financial market has been sounded, intensifying investors' panic.

During trading on the 4th, the U.S. stock market continued to plummet, with all three major indices opening lower and declining by more than 5%. The Dow Jones Industrial Average plunged by 2231.07 points, a drop of 5.5%, falling back below 40,000 points for the first time since last August. TSMC ADR also fell by 6.72%. After falling 1679 points on the 3rd, the Dow continued to plunge by 2231.07 points on the 4th, marking the largest decline since the pandemic in June 2020.

The S&P 500 index dropped 4.84% on Thursday and fell another 5.97% on Friday, recording the largest single-day drop since 2020. Within just two days, the market capitalization of the S&P 500 evaporated by $5 trillion, a decrease of over 17% from recent highs. The Nasdaq index fell nearly 6% on Thursday and dropped 5.82% on Friday, officially entering a bear market. The Philadelphia Semiconductor Index fell by 7.6%.

The President's tariff policy has had a severe impact on technology stocks, including a 7.29% drop in Apple’s stock price, which has accumulated a total decline of 13.27% this week. NVIDIA fell by 7.36%, while Tesla dropped by 10.42%. These companies have been heavily impacted in their business operations in China, especially facing the retaliatory tariffs from Beijing. TSMC ADR also fell sharply by 6.72%, ultimately closing at $146.80.

Not only technology stocks were affected, but large companies that export to China, such as Boeing and Caterpillar, also led the Dow index down, declining by 9.48% and 5.79%, respectively. As investors turned to the bond market for safety, bond prices rose, and yields fell, with the yield on 10-year U.S. Treasury bonds retreating below 4%.

The volatility index from the Chicago Options Exchange, commonly referred to as the Wall Street Fear Index, surged above 40, a value typically seen only during rapid market declines. On the 4th, China's Ministry of Commerce announced a 34% tariff on all U.S. products and included some companies on a so-called "unreliable entities list," claiming these companies violated market rules or contractual commitments. Additionally, China launched an antitrust investigation against DuPont, whose stock price fell by 12.75%.

At the close on the 4th, the Dow Jones Industrial Average ultimately fell by 2231.07 points, or 5.50%, closing at 38314.86 points; the S&P 500 index dropped by 322.44 points, or 5.97%, closing at 5074.08 points; the Nasdaq index, which is tech-heavy, fell by 962.82 points, or 5.82%, closing at 15587.79 points; and the Philadelphia Semiconductor Index dropped by 296.03 points, or 7.60%, closing at 3597.655 points.