On April 7, 2025, global stock markets faced a 'Black Monday', with markets in the Asia-Pacific, Europe, and America plummeting across the board. The Nikkei 225 index saw an intraday drop of over 8%, while the Korean KOSPI index fell by more than 5%, triggering a circuit breaker. U.S. stock futures also plunged, with Nasdaq futures down by 5.1% and S&P 500 futures falling over 3%. This turbulence was primarily caused by the confluence of multiple factors:
1. Impact of Tariff Policies: The Trump administration announced the imposition of 'reciprocal tariffs' on major trading partners, set to take effect on April 9. The U.S. Secretary of Commerce clearly rejected any delay in the measures, exacerbating market panic, with investors fearing an escalation in global trade conflicts.
2. Tightening Liquidity and Interest Rate Expectations: Rising expectations of interest rate hikes by the Federal Reserve, coupled with recent rate increases by the Bank of Japan, trigger the unwinding of arbitrage trades, leading to yen appreciation and a sell-off in risk assets.
3. Geopolitical and Economic Uncertainty: The ongoing Ukraine crisis, China's economic slowdown, and the valuation corrections in tech stocks (such as Nvidia affected by AI technology) further weaken market confidence.
The market chain reaction is significant, with commodity prices plummeting, WTI crude oil falling below $60 per barrel, and a surge in safe-haven demand for gold. Despite emergency interventions by multiple governments (such as South Korea suspending algorithmic trading), analysts still warn of the possibility of continued short-term volatility and advise investors to pay attention to policy adjustments and long-term value opportunities.