Stock Market Today: Stocks volatile amid $9.5 trillion global wipeout
Stocks are set for another volatile session as President Trump stands his ground on tariffs despite global market chaos.
U.S. stocks extended their violent moves in early Monday trading, with oil and the dollar slumping lower, as global markets continued their historic reaction to President Donald Trump's tariff ambitions and the likely impact it will have on the world's biggest economy.
Updated at 10:12 AM EDT
Vol spike
The CBOE Group's VIX index, the market's key volatility gauge, trading north of $50 for the first time in more than five years, apart from brief spike at the height of the August yen crisis, as stocks continue to whipsaw amid the ongoing tariff uncertainty.
The VIX was last marked 20.85% higher on the session at $50.30, a level that suggests options trader are expecting daily swings of 3.15%, or 160 points, for the S&P 500 each day for the next 30 days.
The $VIX ended the week at 45.3, among the highest weekly closes in history.
What has happened in the past following the highest $VIX levels?
Stocks rallied 100% of the time over the next 1, 2, 3, 4, 5 years with returns far above historical averages.https://t.co/l5IYmkeySJ pic.twitter.com/dLB7ekFPJA— Charlie Bilello (@charliebilello) April 5, 2025
Updated at 9:35 AM EDT
Bear with me
The S&P 500 opened in bear market territory, falling 177 points, or 3.5% in the opening minutes of trading to extend its year-to-date slump to around 16.5%.
The Nasdaq, which closed in bear market range on Friday, was marked 565 points, or 3.63% lower, while the Dow slumped 1,215 points.
"Stocks are starting another week with elevated uncertainty about tariffs, their duration, and the potential for more retaliation," said Carol Schleif, chief market strategist at BMO Private Wealth. "The S&P 500 is hovering near bear market territory, as investors reset valuations to determine what makes sense under a new tariff regime."
"It is worth remembering that this market shock happened as the result of a surprising change in policy – not a fundamental breakdown in a key sector, such as housing in 2008 or tech in 2000," she added. "A moderation in the severity of that policy, particularly given the strong economic starting point much of the globe was on going into it, and could help create a market floor."
S&P 500 Opening Bell Heatmap (Apr. 07, 2025)$SPY -3.18%
