In response to President Trump’s announcement of sweeping tariffs, China has implemented significant countermeasures, further escalating global trade tensions. Beijing has imposed a 34% tariff on all U.S. imports, effective April 10, mirroring the U.S. tariffs set to begin the previous day. Additionally, China has introduced export restrictions on critical rare earth elements—such as samarium, gadolinium, and dysprosium—which are essential for manufacturing electric vehicles, military equipment, and advanced technologies. Moreover, China has sanctioned 27 U.S. firms, predominantly in the drone and defense sectors, by placing them on its “Unreliable Entity List,” effectively banning trade with these companies.
These retaliatory actions have intensified fears of a global recession and have led to significant market volatility.Following China’s announcement, S&P 500 futures dropped by 3%, and European equities fell more than 4%. Investors are now closely monitoring upcoming economic data releases and Federal Reserve communications for insights into potential policy responses to the escalating trade conflict.
As the situation develops, it is crucial for traders to stay informed and adapt their strategies to navigate the heightened market volatility. Understanding the implications of these trade policies and their potential impact on various sectors can provide valuable insights for making informed trading decisions.
🔴 Jobs Report Due Today
All eyes are on the March employment report at 8:30 AM ET. Analysts expect 140,000 new jobs added, slightly lower than February’s 151,000. The unemployment rate is forecasted to remain at 4.1%.
🔴 Nike & Apple Lose Billions
The newly imposed 34% tariff on China and 46% tariff on Vietnam have sent Nike’s stock plunging 13%, wiping out $12 billion in market value. Apple also suffered its biggest drop in 5 years, losing over $300 billion in market cap as tariffs on India and Malaysia threaten its supply chain.
🔴 Stellantis Announces Temporary Layoffs
The automaker is laying off 900 employees and pausing production at plants in Canada and Mexico as a response to new 25% auto import taxes.
🔴 Trump: TikTok Deal Close
Trump claims TikTok is close to being sold after its parent company ByteDance received a 75-day extension to divest or face a U.S. ban. The new tariffs could become a bargaining chip in negotiations.
🔴 Zelle Shutting Down App
While Zelle’s money transfer services will still be available, users must re-enroll through their bank as the standalone app shuts down due to low usage.
🔴 Automattic Lays Off 16% of Staff
The parent company of WordPress and Tumblr is cutting 16% of its workforce to remain competitive in the rapidly evolving tech space.
📉 Market Technical Breakdown: ‘Tariffible’ Price Action
Yesterday’s sell-off in the $QQQ tech index (-5%) was fueled by investor anxiety over tariffs. QQQ tested 450 intraday and closed after-hours at 448.5, breaking below key local support levels.
🔹 Support levels to watch: 450-446, with the next major liquidity zones at 430-420 if the decline extends.
🔹 Resistance levels: 460, 472, and 484 before bulls can regain control.
🔹 The 200-day moving average sits at 493, requiring a 9.5% rally to reclaim bullish momentum.
📊 Economic Data Releases Today
🇺🇸 8:30 AM ET: Average Hourly Earnings (Mar)
🇺🇸 8:30 AM ET: Nonfarm Payrolls (Mar)
🇺🇸 8:30 AM ET: Unemployment Rate (Mar)
🇺🇸 8:30 AM ET: Private Nonfarm Payrolls (Mar)
🇺🇸 8:30 AM ET: Participation Rate (Mar)
🇺🇸 8:30 AM ET: U6 Unemployment Rate (Mar)
🇺🇸 11:25 AM ET: Fed Chair Powell Speaks
🇺🇸 11:25 AM ET: Fed Supervision Vice Chair Barr
🇺🇸 12:45 PM ET: Fed Waller Speaks
🇺🇸 1:00 PM ET: US Baker Hughes Oil Rig Count
🇺🇸 1:00 PM ET: US Baker Hughes Total Rig Count
🎯 Actionable Game Plan for OP Traders:
The extreme volatility means great opportunities for premium sellers and momentum traders. Stay nimble, and let the market show its hand before committing capital.
See you all in OP Chat for today’s upgrades, downgrades, and trade ideas! 🚀 #StackWithOP
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