Stock Market Update Thursday April 3, 2025
- AlgoTradeAlert
- 11 minutes ago
- 4 min read
Stock Market Update Thursday April 3, 2025 No rebound materialized after the steep overnight selloff, as the S&P 500 closed at session lows, tumbling nearly 5% and extending its year-to-date decline past 8%. The persistent risk-off sentiment underscores heightened investor uncertainty, with markets struggling to find support amid ongoing economic and policy headwinds.
Market Performance:
S&P 500 (SPX): -4.8%
Nasdaq 100 (QQQ): -5.4%
Russell 2000 (IWM): -6.6%
Away From Stocks: Treasuries experienced aggressive bull steepening, with the two-year yield plunging 20 basis points to 3.71%, while the long bond eased five basis points to 4.49%. WTI crude cratered 7% to sub-$67 per barrel, gold posted a modest retreat to $3,108 per ounce, and Bitcoin slipped below $82,000. Meanwhile, volatility surged, with the VIX spiking over eight points to approach 30.
Macro News Tomorrow Friday April 4 Economic Data (8:30 AM ET)
Mar Average Hourly Earnings (AHE) m/m: 0.3% (Forecast: 0.3%)
Mar Unemployment Rate: 4.1% (Forecast: 4.1%)
Mar Non-Farm Payrolls (NFP): 151K (Forecast: 140K)
Key Watchpoints For Investors
March Jobs Report: Labor market strength will influence Fed policy and investor sentiment.
Fed Chair Powell’s Speech: Any indication of Fed stance on inflation and trade risks will impact bond and equity markets.
Negotiation Outcomes: The White House has signaled flexibility, meaning tariff rates could be adjusted downward if agreements are reached.
Historically, markets have overreacted to Trump’s trade maneuvers, only to recover once clarity emerges. A similar pattern may be unfolding now, with volatility persisting in the short term but potential upside if negotiations succeed.
QT Progress Report:
Reserve Bank credit contracted by $16.3 billion over the past week, further paring down the Federal Reserve’s interest-bearing asset portfolio to $6.687 trillion. This marks a $24 billion decline since the beginning of March and a 25.1% reduction from its spring 2022 peak.
Despite this liquidity tightening, risk assets found no relief, as the sharp overnight selloff in equities persisted. The S&P 500 closed at session lows, shedding nearly 5%, and deepening its year-to-date drawdown to over 8%, signaling continued market repricing amid quantitative tightening.
US Tariff Policy Update: Economic and Market Implications
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