US Stock Markets Rebound After Sharp Plunge Triggered by Global Recession Fears, Trump Tariffs

Dow Jones, Nasdaq, and S&P 500 recover from early losses after a global market crash sent shockwaves through Asian and European indices. Trump’s aggressive trade stance fuels volatility.

US Stock Market LIVE Updates – April 7, 2025:
The US stock market witnessed a dramatic swing on Monday as indices opened to steep losses, echoing the global sell-off, before rebounding later in the session. Initial panic triggered by fears of a global recession and trade tensions led to sharp declines in the Dow Jones, Nasdaq, and S&P 500, but the indices staged partial recoveries by mid-day.

Also Read: “Oil Prices Are Down, There Is No Inflation”: Trump Defends Tariffs Amid Global Market Meltdown

At the opening bell, the Dow Jones Industrial Average plunged over 1,200 points, or 3.17%, marking one of its worst early sessions this year. However, it rebounded swiftly and was trading nearly 1% higher at 39,200 points by late afternoon.

The Nasdaq Composite dropped 4% at open but recovered strongly, climbing 1.5% to hover around 16,000 points. Meanwhile, the S&P 500, which opened 3.57% lower, remained volatile but pared losses, currently trading just 0.12% down at 5,068.22.

🌍 Global Fallout:

Markets worldwide crashed following China’s announcement of 34% retaliatory tariffs on US goods, responding to President Donald Trump’s aggressive tariff policies. The Hang Seng Index in Hong Kong dropped 13.22%, while Japan’s Nikkei 225 lost 7.83%. Europe didn’t fare better—FTSE 100 fell over 5%, and Germany’s DAX plummeted 4%.

📈 What Triggered the Slide:

April 4: The US markets had already endured a severe crash, with the Dow falling over 2,200 points in a single day.
April 7: Fresh tariffs, global panic, and recession fears fueled by sharp corrections in tech and industrial stocks caused panic selling.

President Trump, in a Truth Social post, urged Americans to be “strong and courageous,” insisting the tariffs were a long-overdue correction. He dubbed critics “PANICANs” and reiterated his stance that the US economy would “achieve greatness.”

💡 Expert Insight:

According to Anshul Jain of Lakshmishree Investment & Securities:

The Dow is in oversold territory and could test the 36,000 level if the downtrend continues.
The Nasdaq, having corrected over 21% in six weeks, might see a short-covering bounce, though not a long-term reversal.

🧠 Final Takeaway:

While the US indices rebounded from steep intraday losses, market sentiment remains fragile. With global markets in turmoil, investors are advised to tread cautiously amid high volatility, geopolitical tensions, and rising interest rate uncertainties.

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