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Date: 07-apr-2025
The Dow Jones Industrial Average (DJIA) continued its steep downward spiral on April 7, 2025, as the index dropped another 502.51 points to close at 37,812.35, marking a sharp 1.31% single-day loss. Investor sentiment turned bearish following aggressive tariff announcements by the United States and swift retaliatory moves by China.
President Trump's announcement of a broad 10% tariff baseline on all trading partners, coupled with heightened bilateral tariffs, sent shockwaves through the financial markets. In response, China imposed a 34% tariff on a wide range of American goods, sparking fears of a prolonged and damaging trade war. These events triggered a sharp sell-off across major indices, with the Dow taking a particularly hard hit.
The TradingView chart (see image below) clearly illustrates a multi-day bearish breakdown in the DJIA, with consecutive red candlesticks confirming the bearish trend. A critical support level near 38,000 was breached, further accelerating the downward momentum. If the decline continues, analysts predict the next key support at 36,500 could be tested soon.
Financial institutions have reacted strongly to recent developments. Goldman Sachs now places a 45% chance of a U.S. recession within the next year, citing tightening global financial conditions, uncertainty in policymaking, and deteriorating investor confidence. Meanwhile, traders are turning to bonds and commodities as safe-haven investments, further dragging down equities.
Market experts suggest monitoring these key factors over the coming weeks:
Unless tensions ease or a new trade agreement is reached, the downward pressure on the Dow is likely to continue in the short term.
The Dow’s plunge below 38,000 is a significant psychological and technical event that has investors on edge. While volatility may offer opportunities for seasoned traders, long-term investors are advised to remain cautious, diversify their portfolios, and monitor developments closely.
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Date: 07-Apr-2025
Indian stock markets plunged on April 7, 2025, with Sensex and Nifty falling over 3% as global trade war fears spooked investors.
Date: 08-Apr-2025
Indian stock markets plunged on April 7, 2025, with Sensex and Nifty falling over 3% as global trade war fears spooked investors.
