$2.5 Trillion Wipeout: Wall Street Braces for Tariff Fallout 😱📉

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💣 The Week That Blew Everything Up

• The Dow dropped 3,300 points for the week.

• The Nasdaq entered a bear market (-10%+), and the S&P 500 clocked its worst week since COVID.

• The trigger? Trump’s ‘Liberation Day’ tariffs:

  • Blanket 10% on all imports

  • +34% extra on China

  • China responded with a matching 34% tariff on all US goods starting April 10.

This isn’t just tit-for-tat. This is full-blown global trade war 2.0.

📉 Sector Bloodbath

• Tech nuked:

  • TSLA: -11%

  • NVDA: -8%

  • AMZN: -4.15%

• Oil down 8%, thanks to tariffs + surprise OPEC+ production ramp

• Retail & discretionary? Toasted.

• IPO market froze: StubHub, Klarna, eToro all delayed.

Risk assets? Dead on arrival.

💼 Powell’s in a Blender

• The March jobs report? Great: +228K jobs.

• But unemployment rose to 4.2%.

• Powell finally blinked: admitted tariffs could trigger persistent inflation.

• The market’s now pricing in 5 rate cuts for 2025 as growth fears take the wheel.

🏃‍♂️ Where’s the Smart Money Going?

💸 Dark Pool Prints:

• SPY: $900M+ in block trades clustered at $505–$508

• IWM: $230M at $102–$104

📉 Options Flow:

• SPY: $867M total, with $808M in puts 😬

• IWM: $292M flow, almost entirely bearish

• NVDA, QQQ, PLTR, TSLA—all getting smoked with big-money put plays

• Even META, AAPL saw defensive spreads

🛟 Rotation Plays:

• TLT (long bonds): $43.6M in bullish flows

• GLD: $32M into gold

• HYG: $36M in put protection

Translation: Institutions are hedging hard and buying safety.

📅 What’s Coming This Week (04/07–04/12)

🧨 This is make-or-break week for sentiment.

Monday: Chill… for now. No big releases.
Tuesday: NFIB Small Biz sentiment
Wednesday: FOMC minutes + Delta & STZ earnings
Thursday: CPI drops — Street expects +2.6% YoY. A miss here? Another leg down.
Friday: Mega bank earnings 🏦 (JPM, WFC, MS, BLK)

👀 Wildcard risk: Europe hasn’t retaliated yet. Don’t think they won’t.

💥 Final Take

Last week was not just another sell-off. This was a fundamental shift. Global trade is breaking. The Fed is cornered. Institutions are heading for the exits.

The ‘buy the dip’ crowd? Might want to sit this one out.