On April 3 and 4 local time, global financial markets underwent a deep correction triggered by tariff policy concerns. Over two days, the three major U.S. stock indices recorded cumulative declines exceeding 10%, erasing nearly $6.5 trillion in market capitalization (equivalent to over 47 trillion yuan), marking their largest weekly drop since the 2020 pandemic. European and Asia-Pacific markets also collapsed: Germany’s DAX Index fell nearly 8%, Japan’s Nikkei 225 dropped over 5%, while China’s Shanghai Composite edged down 0.24% on Thursday, and Hong Kong’s Hang Seng Tech Index slid 2.09%. Commodity markets suffered equally severe losses, with spot London silver plunging over 12%, NYMEX crude oil tumbling more than 13%, and traditional safe-haven assets like gold and silver also faltering.
According to Forbes’ Real-Time Billionaires List, the world’s 20 wealthiest individuals lost over
100billion(approximately720billionyuan)inwealthonApril4alone.TheBloombergBillionairesIndexrevealedthatglobalbillionairescollectivelysaw536 billion (about 3.9 trillion yuan) wiped from their fortunes between April 3 and 4, the largest two-day decline in the index’s history. Tesla CEO Elon Musk’s personal wealth shrank by over $12 billion in a single day, while tech giants like Jeff Bezos and Bill Gates suffered massive losses.
Michael Feroli, JPMorgan Chase’s chief economist, warned that the new tariffs could slash U.S. GDP growth expectations for the year from 1.3% to -0.3%, risking a recession. UBS Global Wealth Management downgraded U.S. equities from “attractive” to “neutral,” slashing its S&P 500 target from 6,400 to 5,800, citing “tariff measures far stronger than market expectations.” S&P Global raised its U.S. recession probability from 25% to 30%-35%, while HSBC upped its forecast to 40%. Moody’s Analytics Chief Economist Mark Zandi cautioned that full implementation of the tariffs could trigger a “severe recession.”
The simultaneous decline of traditional safe havens like gold and oil underscores deep market anxiety over an economic downturn. JPMorgan predicts that if the tariff policies persist, the U.S. economy could face a “lost year” by 2025, with global supply chain restructuring and inflationary pressures amplifying market volatility.
Post time: Apr-08-2025