The market is extending its massive selloff
Stock futures are plummeting for the second day, extending Wall Street’s steep selloff following the major indexes’ worst daily drops since 2020. Dow Jones Industrial Average (DJI) futures are down 1,051 points before the bell, while futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are deep in the red as well.
Markets are reacting to news that China will impose a 34% retaliatory tariff on U.S. goods starting April 10, escalating trade tensions. On the economic front, March payrolls rose by a stronger-than-expected 228,000, but the unemployment rate ticked higher to 4.2%, slightly above estimates.
Continue reading for more on today's market, including:
- Back to the basics: different volatility concepts in options trading.
- 3 gold stocks to watch amid safe-haven rush.
- Plus, 2 bank stocks extending losses; AAPL hits fresh lows; and SHEL sinks with oil prices.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.7 million call contracts and over 1.8 million put contracts exchanged on Thursday. The single-session equity put/call ratio surged to 1.02, while the 21-day moving average stayed at 0.60.
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Bank stocks Goldman Sachs Group Inc (NYSE:GS) and Morgan Stanley (NYSE:MS) are looking to extend yesterday's losses before the bell, down 5.6% and 6.3% at last glance, respectively. GS is in the spotlight today after news that it is leading a pool of banks in giving Prada €2.5 billion to acquire Capri Holdings-owned Versace.
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Apple Inc (NASDAQ:AAPL) is down 4.8% in electronic trading, also looking to continue
yesterday's slide, after the news of China's retaliatory tariffs. The tech giant is looking to add to its 18.9% year-to-date deficit, and open at its lowest levels since June.
- London-based oil name Shell PLC (NYSE:SHEL) is down 4.3% before the bell, as oil prices hit multi-year lows. Year-over-year, the equity is down 8%.
- Inflation data and big bank earnings next week.
Stocks Lower Overseas as Well
Asian markets extended their tariff-related selloff, with auto stocks taking the biggest hit in Japan. In response, the region’s Nikkei closed 2.8% lower. South Korea’s Kospi fell 0.9%, after news President Yoon Suk Yeol’s impeachment will be upheld, leaving 60 days for a new presidential election to take place. Meanwhile, Hong Kong’s Hang Seng dropped 1.5% and China’s Shanghai Composite retreated 0.2%, with China imposing a 34% tariff on all U.S. imports beginning April 10.
Sentiment is worse in Europe, though the euro remained strong against the U.S. dollar, earlier hitting a six-month peak. Bank stocks are struggling throughout the region, now one of the worst performing sectors. At last check, London’s FTSE is off 3.6%, France’s CAC 40 is 3.9% lower, and Germany’s DAX carries a steep 4.6% deficit.