US Markets Continue to Decline Are We Nearing a Crisis?

On Friday, April 4, 2025, US financial markets witnessed sharp declines in major stock indices, affected by China's retaliation for President Trump's tariffs.

Friday's Index Performance:

• Dow Jones Industrial Average: Declined 2,231 points, representing a 5.5% decline.

• Standard & Poor's 500 Index: Declined 6%.

• Nasdaq Composite Index: Declined 5.8%.

Retreat from Previous Highs:

• Nasdaq Composite Index: Entered bear market territory, down 19.3% since the beginning of the year.

• Standard & Poor's 500 Index: Declined 13.7% since the beginning of the year.

These declines come amid escalating trade tensions between the United States and China. China imposed retaliatory tariffs of 34% on US imports, raising investor concerns about a full-blown trade war and its negative impact on the global economy.