讀後心得

The tariff policy of U.S. President Trump has caused an impact on global markets, with U.S. stocks plunging for the second consecutive day on Friday, and major indices closing at their lowest point of the day. The Dow Jones Industrial Average fell by over 2,200 points, marking the largest single-day drop since 2020. The S&P 500 index decreased by 5.97%, while the Nasdaq index also declined by 5.8%. China's new 34% tariff on U.S. goods disappointed the market, causing heavy losses in technology stocks, with Apple, NVIDIA, and Tesla all seeing significant drops in share prices. Market panic rose, and the volatility index soared to high levels, while Trump emphasized that his policies would not change.

The tariff policy of U.S. President Trump has impacted global markets, with U.S. stocks plunging for the second consecutive day on Friday (the 4th), closing at the lowest point of the day. China's implementation of a new round of retaliatory tariffs on U.S. goods has raised concerns that Trump may trigger a global trade war, possibly leading to an economic recession.

The Dow Jones Industrial Average plummeted by 2,231.07 points, a decrease of 5.5%, closing at 38,314.86 points, marking the largest single-day decline since the onset of the pandemic in June 2020. This is the first time the Dow has seen a single-day drop exceeding 1,500 points on two consecutive days, as the index had already dropped by 1,679 points on Thursday.

The S&P 500 index fell sharply by 5.97%, closing at 5,074.08 points, its worst performance since March 2020. The benchmark index had already declined by 4.84% the previous day and is now down over 17% from its recent peak. This week, the S&P 500 has cumulatively dropped by 9%, the worst single-week performance since the pandemic began in early 2020.

The tech-heavy Nasdaq index dropped by 5.8%, closing at 15,587.79 points, severely impacted due to many tech companies having business interests in China. Since hitting a record high in December last year, the index has cumulatively fallen by 22%, officially entering 'bear market' territory.

The Philadelphia Semiconductor Index also fell by 296.030 points, or 7.60%, closing at 3,597.655 points. There was broad selling pressure on Friday, with only 14 stocks in the S&P 500 rising.

On Friday, China's Ministry of Commerce announced it would impose a 34% tariff on all U.S. goods, disappointing the market, as investors had hoped that China would attempt to negotiate with Trump before retaliating. Tech stocks were severely hit, with the stock price of iPhone manufacturer declining by 7%, accumulating a 13% drop this week. NVIDIA, a leading AI company, dropped 7% on the same day, while Tesla fell 10%.

Additionally, U.S. companies closely tied to trade with China, such as Boeing and Caterpillar, fell by 9% and nearly 6%, respectively, dragging indexes lower. Market experts stated, "The bull market is dead, and while the market may be nearing the bottom in the short term, there are concerns about the long-term economic impact of a global trade war."

Besides tariffs, Beijing has also placed multiple companies on its so-called "unreliable entity list." China has initiated an antitrust investigation into DuPont, resulting in its stock price tumbling nearly 13%. As investors flocked to the bond market seeking refuge, the yield on U.S. 10-year Treasury bonds fell below 4%. The VIX index, used on Wall Street to gauge market panic, surged above 40, marking an extreme level during fast market declines.

Although the market has reacted strongly to the tariff actions, Trump appears to maintain a tough stance, stating that his "policies will never change." Concerns regarding further escalation of the trade war have intensified.