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- Chaos & Comebacks:Market melted, but new rebound found?
Chaos & Comebacks:Market melted, but new rebound found?
The week was anything but ordinary. From massive selloffs to sudden rebounds, global markets were shaken by escalating trade tensions, unexpected policy twists, and growing concerns over a global slowdown.
Profitus Trader
April 12, 2025
🟥 Monday Meltdown
Markets around the world tumbled on April 7 after former President Trump announced sweeping new tariffs:
20% on EU imports
34% on Chinese imports
China retaliated quickly, triggering fears of a full-blown trade war.
💸 In just five trading sessions, nearly $10 trillion in market value was erased, and the U.S. dollar weakened sharply.
📈 Wall Street’s Whiplash Rally
On Wednesday, Trump surprised everyone by pausing the tariffs—for all countries except China.
Markets cheered:
Nasdaq jumped 12%
S&P 500 gained over 9%
Dow Jones rose 8%
But the optimism didn’t last long...
🔻 Back to Red
On Thursday, Trump hiked tariffs on Chinese imports to 145%, triggering another brutal day:
Nasdaq: -4.3%
S&P 500: -3.46%
Dow: -2.5%
Volatility remained sky-high, with investors whipsawed by headlines and policy shifts.
Good news
President Donald Trump has announced significant tariff exemptions for key consumer electronics, including smartphones, laptops, memory chips, and servers. These products are now excluded from the recently imposed 125% tariffs on Chinese imports and the 10% global tariffs, effective retroactively from April 5, 2025. ​
Major tech companies such as Apple, Nvidia, Dell Technologies, and Super Micro Computer are among the beneficiaries. Analysts suggest this move could bolster tech stocks and alleviate concerns over rising consumer prices.
12/04/2025
🔎 Insights on the market 🔎
The SPDR S&P 500 ETF ($SPY) experienced wild daily swings this week, driven by tariff shocks, political headlines, and shifting investor sentiment. Here's how it played out:
📅 Monday, April 7
Markets initially dropped on Trump’s tariff bombshell, but rumors of exemptions sparked a late-day recovery rally.
📅 Tuesday, April 8
Confusion and fear over the scope of the tariffs caused a sharp intraday selloff, wiping out Monday’s gains and then some.
📅 Wednesday, April 9
Massive rally after Trump paused tariffs for most countries (except China).
📅 Thursday, April 10
Markets pulled back after Trump raised tariffs on Chinese goods to 145%, reigniting fears of supply chain disruptions.
📅 Friday, April 11
The week ended on a modest rebound, but volatility remained elevated. Traders continued digesting the tariff fallout.
Chart:
After losing the double-bottom support that had formed around $549.27, things looked bad from a technical perspective—and the news confirmed it. SPY and the other indices melted down, dropping nearly 12% until they found support in the $482.5–$493.10 area. This move was triggered by the announcement of reciprocal tariffs that shook the market.
But then, on Wednesday, Trump suspended the tariffs for 90 days, and the indexes responded with an impressive rally, clearly visible in that massive green candle with nearly 11% range. It filled the gap and pushed all the way back to the previous support—now resistance—at $549.27.
The following day, unsurprisingly, there was some profit-taking after such a huge move, especially with no major updates. Still, both candles on those days closed relatively bullish.
Another observation: there's rising volume accompanying this bounce, which is a good sign. But until we get more clarity on a potential agreement between the U.S. and China, it’ll be tough to call the direction with confidence.
The good news is that on Saturday, exemptions for electronics and other products were clarified, so unless something negative breaks before Monday, the market will likely react positively—especially names like AAPL, which could help lift the index.
What bulls are hoping for now is any headline about a deal, more exemptions, or signs that a full-blown trade war is off the table in the medium term. That would likely fuel another leg higher.
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