On Friday, April 11, 2025, global financial markets ended the week on a sharply negative note as investors digested the wide-reaching implications of newly imposed U.S. tariffs. The protectionist move, announced earlier in the week, triggered sell-offs across major exchanges and heightened fears of a broader global economic slowdown.
Wall Street stumbles
In the U.S., stock markets closed the week deep in the red. The S&P 500 recorded its steepest two-day decline since the early days of the pandemic in 2020, while the Dow Jones Industrial Average shed more than 800 points on Friday alone. The Nasdaq Composite slid into bear market territory, having lost over 20% from its recent peak.
Investor sentiment has turned increasingly sour amid growing concerns that the tariffs, aimed primarily at Chinese and European goods, could choke off international trade and crimp corporate profits. The tech sector, heavily reliant on global supply chains, was particularly hard-hit.
Larry Fink, CEO of BlackRock, called the situation “beyond anything I could have imagined,” warning that the U.S. might already be in a recession. His remarks echoed a broader sense of uncertainty about the future of global trade and the stability of the financial system.
Asia and Europe follow suit
Markets across Asia echoed Wall Street’s turmoil. Japan’s Nikkei 225 plunged nearly 8%, triggering automatic trading halts during morning sessions. South Korea’s Kospi and Hong Kong’s Hang Seng Index also suffered multi-percent losses, with many exporters and manufacturing stocks taking heavy hits.
The story was much the same in Europe. The UK’s FTSE 100 posted its biggest single-day loss since March 2020, while Germany’s DAX and France’s CAC 40 dropped sharply. The pan-European STOXX 600 entered correction territory after falling more than 10% from its peak earlier in the year.
Much of the concern stems from how integrated global supply chains have become. With new tariffs increasing costs on everything from machinery to consumer electronics, companies are being forced to reassess their operations—and investors are reacting swiftly.
Commodities surge, dollar dips
Gold surged to record highs, surpassing $3,200 per ounce, as traders fled to traditional safe-haven assets. The jump reflects deep anxiety in the markets, not just about trade policy but also about the broader global economic outlook.
Meanwhile, the U.S. dollar fell to a three-year low against a basket of major currencies. Investors appear to be losing confidence in the dollar as the U.S. embraces more isolationist policies. The weakening of the dollar also complicates matters further by adding to inflationary pressures in an already fragile economy.
Policy responses begin
In response to the financial turmoil, central banks are signaling a willingness to act. The European Central Bank and Bank of England have hinted at potential rate cuts to cushion their economies from the expected slowdown. In Asia, policymakers are preparing stimulus packages to support domestic industries that may suffer from reduced export opportunities.
China, in particular, has responded with retaliatory tariffs and has announced domestic subsidies to bolster its tech and manufacturing sectors. The potential for an extended tit-for-tat trade war is becoming more real, and with it, the risk of a global recession looms larger.
Looking ahead
While some analysts hope the market correction may stabilize in the coming weeks, the consensus is that much depends on how policymakers proceed. If trade tensions escalate further, the global economy could enter a period of stagnation or contraction.
For now, markets remain on edge, watching closely for any signals of negotiation or resolution. Until then, investors are bracing for continued volatility—and a very uncertain road ahead.
By R.E.F.H., Editor-in-Chief, Newshub Finance
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