Musings on Markets · 2025-04-07 · 423d

Market Crisis Analysis: Tariff Impacts on Global Equity Markets and Asset Classes

Following a surprise tariff announcement on April 2, 2025, US equity indices declined nearly 10% by Friday, with global markets experiencing widespread losses across regions and sectors. The tariffs, based on trade deficit magnitudes rather than reciprocal tariff rates, triggered a market markdown affecting technology stocks and energy sectors most severely, while defensive sectors showed relative resilience.

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Metrics in this report

Consumer Staples Decline

2.30%

best performing sector

US consumer staples

Energy Sector Decline

14.2%

percentage, worst performing

US energy stocks

High P/E Stocks Decline

10.91%

lowest earnings yield decile

US equities by valuation multiple

Low P/E Stocks Decline

8.08%

highest earnings yield decile

US equities by valuation multiple

Mag Seven Value Loss

1.55$ trillion

absolute

Seven largest tech stocks

Mag Seven YTD Performance

14.79%

decline year-to-date

Through March 28, 2025

S&P 500 Weekly Decline

9.24%

week ending April 4, 2025

US equities from March 28 close

Small Asia Equity Decline

12.61%

regional aggregate

Week of April 2-4, 2025

Technology Sector Decline

11.6%

percentage

US technology sector

Technology Sector Loss

1.8$ trillion

absolute value

US technology stocks

US Equity Market Value Loss

5.3$ trillion

aggregate

Week of April 2-4, 2025

Utilities Sector Decline

4.40%

defensive sector

US utilities