On April 1, 2025, stock markets experienced significant volatility, influenced by the impending announcement of what President Donald Trump has termed "Liberation Day." On Wall Street, the S&P 500 initially declined by as much as 1.7 percent during morning trading but ultimately rebounded to close up by 0.6 percent.

This reversal helped to reduce its quarterly loss to 4.6 percent, marking the worst quarter for the index in over two years.

The Dow Jones Industrial Average followed a similar trajectory, initially posted losses before gaining 417 points, or 1 percent.

Conversely, the Nasdaq composite declined slightly by 0.1 percent, hindered by losses in key technology stocks such as Tesla and Nvidia.

In Australia, futures pointed to a recovery for the Australian share market, anticipating an opening rise of 67 points, or 0.9 percent, following a challenging previous session.

The Reserve Bank of Australia is scheduled to announce its interest rate decision later today, with expectations suggesting rates will remain unchanged.

Globally, market uncertainty has been exacerbated by concerns regarding new tariffs proposed by the Trump administration, designed under what the president describes as "reciprocal" tariffs.

These tariffs aim to match the tax burdens imposed by other nations on American products.

However, details surrounding the implementation on April 2 remain vague, creating a cloud of speculations regarding their potential economic impact.

In Asia, the Nikkei 225 index in Japan plummeted by 4 percent, while South Korea’s Kospi index fell by 3 percent.

France's CAC 40 experienced a decline of 1.6 percent.

As a result of the prevailing uncertainty, investors gravitated toward safer assets; gold prices increased, briefly surpassing $3,160 per ounce.

Furthermore, Treasury bond prices also rose, leading to a decrease in yields, with the 10-year Treasury yield declining from 4.27 percent to 4.21 percent.

Economists at Goldman Sachs anticipate the announced tariffs to average around 15 percent, revising their forecasts for inflation upward while downgrading expectations for economic growth in the United States.

They now estimate a 35 percent likelihood of recession within the next year, an increase from previous predictions.

Market sentiment indicates that if the announced tariffs are less severe than anticipated, stock prices may rebound; however, if conditions are more onerous, market declines may deepen.

Reactions from the major tech firms reveal that Tesla has seen a drop of 35.8 percent year-to-date, while Nvidia's stock has declined by 19.3 percent, reflective of investor concerns regarding overvaluation against earnings growth.

In a contrasting trend, Mr. Cooper saw its stock surge by 14.5 percent following the announcement of its acquisition by mortgage company Rocket at a valuation of $9.4 billion.

Conversely, Warren Buffett’s Berkshire Hathaway rose by 1.2 percent, bolstered by reports of approximately $334.2 billion in cash reserves.

In a notable trading anomaly, Newsmax's shares surged by 735 percent during its opening day, leading to multiple trading halts due to extreme volatility.

At market close, the S&P 500 increased by 30.91 points to settle at 5,611.85, the Dow Jones Industrial Average rose by 417.86 to reach 42,001.76, while the Nasdaq composite fell by 23.70 to finish at 17,299.29.