Finance/ Stock Market
After the terrible meltdowns happened in the stock market, the stocks and cryptocurrencies have started to rise. Know the reason behind last week’s meltdown and most importantly, the bounce back of the stock market?! Also, know which sectors are still stumbling?!!
Introduction
Earthquakes not only happen in Myanmar but also in the stock market last week through which many investors faced heavy shaking shockwaves.
Last week, the situation left all investors in worry and panic worldwide.
To end all this, major indices started bouncing back, and cryptocurrencies like Bitcoin and Ethereum are gaining momentum.
The markets are regaining stability amid hopes of easing geopolitical tensions and renewed investor interest.
What Triggered Last Week’s Meltdown?
The reasons behind the stock market meltdown were:
- The U.S Reciprocal Tariffs that were freshly launched by U.S President Donald Trump.
- Geopolitical uncertainty in Asia and the Middle East.
- Weak global economic outlook.
- Profit booking in overhead.
Also Read About – Trump’s Reciprocal Tariffs and their causes.
Stock Market Comeback Across the Globe
The Global Stock market, especially in the U.S., Europe, and Asia, experienced a major stock meltdown last week due to the above-mentioned reasons.
However, markets have now started rebounding with renewed vigor.
United States
Dow Jones
On April 4, 2025, Dow Jones faced a 5.5% drop in a single day. Later, on April 7, 2025, it also faced a drop of about 0.9%.
However, this week on Tuesday, April 8, 2025, the Dow Jones Industrial Average is projected to rise by 3%.
S&P 500
On April 3, 2025, the S&P 500 declined over 274 points, which is 4.88%, and on April 4, 2025, the S&P 500 continued to decline and dropped an additional 5.97%.
Now, on April 8, 2025, the S&P 500 is up by 0.87% from the previous close.
Tech giants including Apple, Amazon, Tesla, Alphabet, and Nvidia have seen more than a 1% increase in premarket trading.
Healthcare stocks like Humana, CVS Health, and UnitedHealth are gaining traction following favorable Medicare policy updates.
Europe
On April 4, 2025, the FTSE 100 (UK) plunged nearly 5%, facing its biggest daily drop after Corona, and on April 7, 2025, the index continued to drop by up to 4.38%. Later on April 8, 2025, the FTSE 100 rebounded by 2.7%.
On April 4, 2025, the Stoxx 600 (Pan-European Index) fell approximately 8.4%, and on April 7, 2025, the index faced an additional decline of 4.5%. Now, on April 8, 2025, the Stoxx 600 rose by 1.1%.
Stocks of tech and manufacturing companies such as ASML, Safran, and Adyen have bounced back.
However, automobile stocks like Volkswagen and BMW continue to underperform due to trade uncertainties.
Asia
In early April, Japan’s Nikkei 225 faced a 9% drop, but now on April 8, 2025, Nikkei 225 surged over 6%, fueled by optimism around potential trade negotiations with the U.S.
India’s BSE Sensex and Nifty 50 also faced drops of 2.95% and 3.34% on April 7, 2025, respectively. Later today, April 8, 2025, the BSE Sensex and Nifty 50 closed at an increase of 1.49% and 1.69% respectively.
China’s Shanghai Composite Index and the Shenzhen Component Index plummeted by 7.34% and 9.66% respectively on April 7, 2025. Now, on April 8, 2025, the Shanghai Composite Index and the Shenzhen Component Index recovered up to 1.58% and 0.64% respectively.
In contrast, markets in Indonesia, Thailand, and Taiwan still struggle. Indonesia’s market, in particular, dropped nearly 10% post-holiday.
The above shown data may not be 100% accurate always investigate before investing. “For live market updates and in-depth financial news, readers can visit Investing.com.”
Cryptocurrency Market on the Rise Again
Alongside the stock market recovery, the crypto market is also rallying after a week of bearish sentiment.
Bitcoin (BTC)
Currently trading at $79,700, up 3.5% in 24 hours.
Experienced a high of $80,936 during intraday trading.
Ethereum (ETH)
Now at $1,575, marking a 4.4% increase.
The range for the day spanned from $1,484 to $1,608.
This crypto comeback is driven by strong buying sentiment, increased institutional involvement, and the perception of crypto as a hedge against global economic instability.
Sectors Still in the Red
While the overall outlook is positive, not all sectors have fully recovered:
Automobile industry: Still faces pressure due to global supply chain issues and low demand.
Emerging Asian markets: Some remain volatile due to capital outflows and weaker domestic growth outlooks.
Why Are Markets Recovering?
Several reasons influence the rebound of the whole market. Let’s list out some:
- Speculation of trade talks between the major economies like the U.S and China.
- Strong corporate earnings as many companies beat Q1 expectations.
- The recovery of crypto may also have played a sentimental role in the bounce back.
- Tech market still alive, AI, cloud and semiconductors remain hot.
- Healthcare policy wins: Helping insurance and medical stocks surge.
Conclusion
The global stock and crypto markets have rebounded after facing a severe storm last week.
Though the rebound is impressive, caution is still needed.
The investors should continuously monitor global news and updates amid ongoing trade talks and regulatory uncertainties. For now, markets seem to be on the mend — but the road ahead still holds potential twists.
Whether this up-and-down momentum continues or fades depends on the global developments in the coming days. Only time can give us the perfect answer.
Due to the current situation, many people fear that a global recession may come. But be optimistic. Let us not fear for the comings, let us face today for tomorrow’s betterment. As the saying goes, “Let us cross the bridge when it comes.”
For now, the mood is optimistic – and that’s a welcome shift.
