CNBC Business News Update - Market Open: Stocks Plunge For A Third Day, JP Morgan Chase CEO Writes Investor Letter Warning Of Higher Inflation, Mortgage Rates Falling 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, U.S. stocks plunging for a third day. Asian and European markets tanking again. The S&P 500 index here in the U.S. now in a bear market, down 20% from its record high. The Nasdaq was already in bear market territory. Checking the numbers out of the gate this morning, the Dow down 1400 points, 3.6%. The S&P 500 index down 201 points, that's 4%. The Nasdaq is down 679 points, that's more than 4%. 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 Kramer. Most of the executives I 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 in favor of free trade or are we really trying to eliminate trade deficits because they're completely different things?

Of course. 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 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 percent, 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. Weeknights. I think bonds represent safety in a world where the president of noninflation has become the chief impediment to higher stock prices. Too many companies can be terrible. There's just way too much fear. Mad Money. Weeknights 6 Eastern CNBC.