- Trump’s tariff program has triggered a historic selloff, with $3.25 trillion wiped from U.S. stocks, pushing major indices into correction territory
- Tech giants, retail, and financial stocks suffered massive losses, while Tesla plunged 10.42%, deepening its nearly 40% year-to-date decline
- The crypto market added $5.4 billion, with Bitcoin and altcoins showing resilience, but whether digital assets hold firm in a predicted 2025 U.S. recession remains uncertain
Only two days after President Donald Trump announced its groundbreaking tariff program — imposing a 10% base import duty on all goods entering the U.S. as well as additional tariffs ranging from 27% to 36% — financial markets have entered a swift downward spiral.
Notably, the American stock market suffered devastating consequences after “Liberation Day”. Today, April 4th, we witnessed a complete sellout of American stocks, as $3.25 trillion was wiped out from the market in 24 hours.
Tech-heavy firms like Nvidia (NVDA) and Apple (APPL) suffered some of the biggest losses of the day with 7.39% and 7.28% decreases, respectively. When accounting for the more-than-likely retaliations by China, and how the tech industry relies on Chinese imports such as semiconductors, electronic components, and manufacturing equipment puts these companies at an even more vulnerable point.
Despite being so close to the White House, Elon Musk’s Tesla (TSLA) stock was also one of the most affected by the tariffs story on April 4th. Today, the stock saw a sharp decrease of 10.42% — adding up to a nearly 40% decrease year-to-date. Tesla also relies on imports like Chinese lithium-ion battery materials and German engineering components, leaving the E.V. giant also at a powerless position.
Retail and consumer-facing companies were equally battered—Amazon (AMZN) fell 4.15%, while Walmart (WMT) sank 4.66%. Financial stocks weren’t spared either, as JP Morgan (JPM) plunged 8.05%, and Berkshire Hathaway (BRK.B) dropped 6.91%.
Cryptocurrencies Showing Resilience?
Amid the turmoil in traditional markets, the cryptocurrency sector has shown surprising resilience. While stocks plummeted, the crypto market added $5.4 billion in value, signaling a potential shift in investor sentiment. Bitcoin, in particular, has seen modest gains, climbing to $84,103, up by 1.65% in the day. Meanwhile, altcoins like XRP have surged by 7%.
The latest trend of institutional crypto adoption has likely strengthened the sector as a hedge against inflation, with major financial firms incorporating digital assets into their reserves. This shift suggests that cryptocurrencies are being seen as a potential alternative to traditional investments during uncertain economic times, particularly Bitcoin–the standard for storing value in the digital landscape.
The recent $5.4 billion inflow into the crypto market, contrasted with the $3.25 trillion wiped out in U.S. stocks, may indicate that some investors are diversifying into digital assets. However, the long-term implications remain unclear, especially considering what is likely to come.
Chief U.S. Economist at J.P. Morgan Michael Feroli has revisited its GDP estimate for 2025 after Trump’s tariffs, now predicting a 0.3% contraction for the full year. His forecast includes a two-quarter recession, with a 1% decline in Q3 followed by a 0.5% drop in Q4.
If this downturn materializes, it will serve as a true test for crypto as investors reconsider its role in a weakening economy. While digital assets have gained traction as a hedge against inflation, their ability to withstand broader financial distress remains uncertain.
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