CNBC Business News Update - Market Midday: Stocks Lower, Social Media Post Moved Markets, All 2024 Gains Wiped Out for Dow & Nasdaq 4/7/25

Episode Date: April 7, 2025

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored by CNBC's Jessica Ettinger.

I'm Jessica Edinger, CNBC. Today President Trump threatening a new 50 percent tariff on China if Beijing doesn't remove retaliatory tariffs. And the escalation is on in what some call a game of chicken between the U.S. and the rest of the world. Markets tanking, the Dow down 655 points, 1.7%. The S&P 500 index down 55 this afternoon, that's a little more than 1%.

The Nasdaq down 126 points, 8 tenths of 1%. A wild session already today for stocks. The market plunged this morning, then went green on a social media post apparently saying President Trump was pausing tariffs, which the White House says is not happening. It is quote-unquote fake news that from the White House press secretary saying that the president is committed to his tariff regime and any reports that he's considering a 90-day pause are quote fake news. White House is not blinking.

Clearly the market wants the White House to blink. That's why you saw that jump. One of the things we're going to have to figure out is sort of where this report came from on social media and how it moved the market to the extent that it did. CNBC's Eamon Javers, the president not influenced by the disastrous performance of stocks since inauguration day. And on this 65th trading day of the year, the Dow and the NASDAQ have now wiped out all of last year's gains.

Many regular savers have an S&P 500 index fund in their retirement accounts, and they're seeing those losses. President Trump saying he doesn't want to see stocks go down, but he posted sometimes, you have to take medicine. Here's CNBC's David Faber with Mad Money host Jim Cramer.

Most of the executives I've spoken with over the weekend think we are potentially going to have a recession. Absolutely. And the market is clearly saying that. No disagreement. There it is. And I mean, it becomes a self-fulfilling prophecy. People are pulling back to a certain extent in terms of making decisions. I come back to this basic notion of this policy, whatever you want to call it,

in and of itself, which is, is it a negotiation or is it revenue raising? Are we are in favor of free trade or are we really trying to eliminate trade deficits? Because they're completely different things. Of course. J JP Morgan Chase CEO Jamie Dimon, after backing Trump's tariffs, now says the Trump tariffs will boost inflation and slow an already weakening US economy. His annual letter is out. He's writing in his 58 page annual letter

that the economy is facing quote, considerable turbulence. He's saying that the short-term effects from tariffs is likely to have inflationary outcomes facing quote, considerable turbulence. He's saying that the short-term effects from tariffs is likely to have inflationary outcomes and quote, whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth. He says America first is fine,

as long as it doesn't end up being America alone. CNBC's Leslie Picker, interest rates are falling as are mortgage rates with the 10-year treasury under 4%. That translated to the mortgage rate for a 30-year fixed home loan going into the weekend of 6.6%, according to Mortgage News Daily. Oil below $60 for the first time in four years, although that's below break even for many shale producers. Jessica Edinger, CNBC.