讀後心得

The tariff policy of U.S. President Trump has impacted the global market, with U.S. stocks continuing to plunge on Friday (the 4th), as major indices closed at their lowest points of the day. The Dow Jones Industrial Average fell by 2,231.07 points, recording the largest single-day drop since June 2020. The S&P 500 index and the Nasdaq index dropped by 5.97% and 5.8%, respectively, entering a bear market. China imposed a 34% retaliatory tariff on U.S. goods, deepening market concerns over the trade war and economic recession. Major tech stocks such as Apple, Nvidia, and Tesla were heavily hit, and investors turned to the bond market for safety, leading to a significant rise in the market's fear index. Trump maintained a tough stance on this matter, stating that his policies will not change.

The tariff policy of the President of the United States has had a significant impact on the global market. U.S. stocks continued to decline on Friday (the 4th), suffering sharp losses for the second consecutive day, with major indices closing at their lowest points of the day. This was due to China implementing a new round of retaliatory tariffs on U.S. goods, raising concerns in the market about a potential global trade war and consequently affecting economic trends.

• The Dow Jones Industrial Average fell by 2,231.07 points, a decrease of 5.5%, closing at 38,314.86 points, marking the largest single-day drop since June 2020. This is the first time the Dow has experienced a single-day drop of more than 1,500 points for two consecutive days.
• The S&P 500 index plummeted by 5.97%, closing at 5,074.08 points, the largest drop since March 2020, and accumulated a 9% decline for the week, marking the worst weekly performance since the outbreak of the pandemic in early 2020.
• The tech-heavy Nasdaq index also dropped by 5.8%, closing at 15,587.79 points. Since reaching an all-time high last December, the index has cumulatively dropped 22%, officially entering a "bear market" territory.
• The Philadelphia Semiconductor Index fell by 296.030 points, down 7.60%, finally closing at 3,597.655 points.

Amid widespread selling pressure, only 14 stocks in the S&P 500 index saw gains. The Chinese Ministry of Commerce announced a 34% tariff on all U.S. goods, disappointing the market as investors had hoped that the Chinese side would negotiate with Trump before retaliating.

• Technology stocks such as Apple saw their prices fall by 7%, with an accumulated drop of 13% for the week.
• Artificial intelligence company Nvidia dropped by 7%, and Tesla plummeted by 10%. These companies' businesses are severely impacted in China.
• In the Dow data, Boeing and Caterpillar, which have close trade ties with China, dropped by 9% and nearly 6%, respectively, further dragging down the index's performance.

Analysts believe that the current market situation is concerning, as long-term economic growth may be affected by a global trade war. China's countermeasures are not limited to tariffs but also include placing certain companies on a "unreliable entity list" and launching an antitrust investigation against DuPont, which has led to a significant drop in its stock price.

Due to market anxiety, investors flocked to the bond market for safety, causing the yield on U.S. 10-year Treasury bonds to fall below 4%. Meanwhile, the market's fear index (VIX) soared above 40, indicating extreme panic in the market.

Although the market reacted sharply, the President's remarks on Friday indicated that he remains firm on his policies, and concerns about an escalation of the trade war continue to linger in the market.