Digest | 4 April 2025
- Edward von der Schmidt
- Apr 5
- 5 min read
Updated: Apr 21
Equity indices' two-day plunge marked their worst performance since COVID and the 2008 financial crisis. Friday's losses neared 6% in the S&P 500 (where all 11 sectors retreated) as collateral calls exacerbated risk asset sales in light of trade war escalation and attendant stagflation fears. Given resilient employment data for March, the market rout appeared unlikely to compel near-term monetary easing on account of inflation concerns amplified by Fed Chair Powell. Safe haven bids drove 10-year Treasury yields below 4.00% as the dollar tested six-month-lows against G10 peers and market strategists priced in greater odds of a global recession. In the US, the 10% baseline import tax now applies and penalty rates will be effective April 9.