April kicked off with heavy selling across U.S. equity markets with all major indices off more than 2% on Monday. The Nasdaq 100 dipped negative year to date for the first time in 2018, and 10 of 11 S&P sectors were lower on the year. Sentiment reversed Tuesday as stocks rebounded from Monday’s selloff with all 11 sectors moving higher in a late-day rally. The Dow Jones Industrial Average rose almost 400 points or 1.6%, while the S&P 500 and NASDAQ Composite rose 1.3% and 1% respectively. Midweek, China announced retaliatory tariffs against the United States, and the initial reaction saw many industrial heavyweights opening down significantly, with the announced tariffs affecting soybeans, beef, tobacco, and most notably, aircrafts, among other products. It was a key test of support for U.S. equities, with the Dow closing more than 700 points off its lows gaining 0.96% on the day. The S&P 500 and Nasdaq saw even stronger daily gains to pare back recent losses, closing up 1.16% and 1.45% higher, respectively. Stocks posted gains for a third consecutive day Thursday, the first such occurrence in a month. Investors’ fears regarding a potential trade war with China seemed to have subsided as all three major indices once again closed higher on the day. With heightened volatility as of late, investors are likely looking ahead to first quarter earnings season with hopes that strong earnings growth will help to soothe some of the worries in the market. Stocks traded markedly lower on Friday after President Trump asked the U.S. Trade Representative to consider $100 billion worth of additional tariffs on China, while a poor jobs report was also released in the pre-market hours. The wage inflation reading came in at 2.7%, which lessened some fears, but comments from the President that markets may feel “pain” pressured equities into the close. The Dow Jones Industrial Average, the NASDAQ composite, and S&P 500 all saw declines of more than 2% on the day. The selling was widespread with all sectors finishing in the red, and investors seeking safer investments pushed bond yields lower as well.
