Recession fears are reigniting as China retaliates against U.S. tariffs
Wall Street is set to extend its brutal selloff, with the Dow Jones Industrial Average (DJI), S&P 500 Index (SPX), and Nasdaq Composite (IXIC) headed for their worst weeks since 2020. The Dow was last seen down more than 900 points, while the Nasdaq has officially entered bear market territory after falling over 21% from its December record closing high. Plus, both the SPX and IXIC are pacing for their sixth negative week in seven.
Renewed recession fears and President Donald Trump’s sweeping tariffs triggered swift retaliation from China. Despite strong March jobs data, investors are cautious following Federal Reserve Chairman Jerome Powell’s remarks. Powell said the central bank faces a “highly uncertain outlook” due to tariffs, which could raise inflation and slow growth. He added the Fed will hold off on any interest rate moves until economic impact becomes clearer.
Continue reading for more on today's market, including:
- 3 chip stocks to watch amid sector selloff.
- China's retaliatory tariffs dent 2 equipment stocks.
- Plus, BA options activity spikes; MKTX bucks selloff; and DD sinks on China probe.
Boeing Co (NYSE:BA) stock is seeing a surge in options activity, with 91,000 calls and 99,000 puts exchanged so far today -- triple the average intraday volume. The expiring weekly 4/4 145-strike call is most popular, with new positions being opened there. The aerospace stock is down 8% at $138.90 at last glance, after China announced a 34% tariff on U.S. imports that will impact the company's exports and sourcing. BA earlier dropped to its lowest level since October 2022, and fell 24.3% in the last 12 months.
MarketAxess Holdings Inc (NASDAQ:MKTX) is one of only a few stock in the black today, last seen up 2.2% at $220.80. The bond-trading platform reported record trading volumes in March, helping shares recover from a choppy start to the year. MKTX added 7.1% in the last nine months, but is still hovering just below breakeven on a year-to-date basis.
DuPont de Nemours Inc (NYSE:DD) stock is among the SPX’s worst performers, down 10.6% at $60.62. The bear gap follows news that China’s State Administration for Market Regulation launched a probe into DuPont China Group over suspected monopolistic behavior -- a major development amid ongoing U.S.-China trade tensions. Tariff pressures are also weighing on DD, which is now 20.8% lower year to date.