As shown on the S&P 500 Index (US SPX 500 mini on FXOpen) chart, the benchmark US stock index dropped below 5,450 points for the first time in 2025. This decline reflects the US stock market’s reaction to the tariffs imposed by the White House on international trade.
According to Reuters:
→ President Donald Trump announced a 10% tariff on most goods imported into the United States, with Asian countries being hit the hardest.
→ This move escalates the global trade war. “The consequences will be devastating for millions of people worldwide,” said European Commission President Ursula von der Leyen, adding that the 27-member EU bloc is preparing to retaliate if negotiations with Washington fail.
Financial Markets’ Reaction to Trump’s Tariffs
→ Stock markets in Beijing and Tokyo fell to multi-month lows.
→ Gold hit a new all-time high, surpassing $3,160.
→ The US dollar weakened against other major currencies.
The S&P 500 Index (US SPX 500 mini on FXOpen) is now trading at levels last seen in September 2024, before Trump’s election victory.
Investor sentiment appears to have turned bearish, with growing concerns over the impact of Trump’s tariffs, as fears mount that they could slow down the US economy and fuel inflation.
Technical Analysis of the S&P 500 Index (US SPX 500 mini on FXOpen)
The bearish momentum seen yesterday signals a continued correction, which we first identified in our 17 March analysis.
At that time, we mapped out a rising channel (blue) that began in 2024, suggesting that selling pressure might ease near its lower boundary. However, Trump’s policy decision has reinforced bearish confidence, and now the price may continue fluctuating within the two downward-sloping red lines. This suggests that the long-term blue growth channel is losing its relevance.
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