Nick Goold
Markets started the week with a lot of fear, but the worst-case scenario — another “Black Monday” — didn’t happen. U.S. stock futures dropped as much as 5% in early trading, and Asian markets saw heavy selling. The pressure came from concerns about tariffs, slowing global growth, and the chance of a long trade war. In the U.S., selling increased at the open after margin calls, but stocks later stabilized.
The Nikkei 225 in Japan dropped 7.8%, one of its biggest one-day losses in recent years. In the U.S., the Dow fell 0.9%, the S&P 500 lost 0.2%, and the market avoided a full crash.
The stress in the market was driven by both headlines and online rumors. Treasury Secretary Scott Bessent said the U.S. is unlikely to finalize new trade deals before April 9, meaning retaliatory tariffs will begin as planned. White House adviser Kevin Hassett said the U.S. is sticking with its tariff strategy and that President Trump will decide if new trade deals are good enough. Trump also said China could face a new 50% tariff if it doesn’t back down.
Later in the day, stocks jumped on reports of a 90-day pause in tariffs, but the White House quickly denied the story, calling it "fake news." Stocks fell again, but not all the way back to the lows. This back-and-forth showed how sensitive the market is right now.
Some positive signs have started to appear. Over 50 countries have started trade talks with the U.S., including Japan and Vietnam. Prime Minister Ishiba of Japan confirmed a video meeting with Trump, although Japan hasn’t submitted a full proposal yet. Vietnam reportedly offered to cut tariffs on U.S. goods to zero. Trump said he’s seeing "good progress," but added that tariffs will stay high for countries that retaliate.
Market Psychology: What Traders Are Thinking
In the lead-up to Monday’s open, Titan FX ran a sentiment poll to see what traders expected for U.S. stocks:
What do you think will happen in U.S. equities Monday?
Some fear a repeat of Black Monday. On October 19, 1987, the market crashed 22.6% in a single day 📉🇺🇸 — the worst in history.
Could it happen again?
📉 Black Monday — crash >20%: 48.6%
⚠️ Sharp drop but not a crash: 34.3%
🔄 Choppy but flat close: 8.6%
📈 Surprise bounce: 8.6%
These results show how high fear levels are. Almost half of traders expected a crash like 1987 — even though that’s extremely rare.
This is a good example of how crowd psychology can drive markets, especially in times of stress. When most traders lean too far in one direction — either too fearful or too confident — the market often moves the other way.
Understanding market emotions is a powerful skill. In fast-moving markets, fear and hype can cause big price swings. Traders who can read the mood of the market can spot better entry and exit points, and avoid getting caught in emotional moves.
Markets This Week
U.S. Stocks
Stocks held up better than expected, but a big recovery is unlikely unless President Trump announces some relief on tariffs. Overall sentiment remains cautious, and many are now worried about a possible recession. Until there is clear news from the White House, the upside could be limited.
Japanese Stocks
The Nikkei 225 is now down 20% in 2025, which means it’s in bear market territory. The index could find support around the 30,000 level or near the 2024 low. The rebound in USD/JPY is good news for Japanese stocks. Japan has started tariff talks with the U.S., but progress may take time. As long as the 2024 low holds, buying on dips may be the best approach.
USD/JPY
USD/JPY moved higher after holding support at 145. U.S. long-term interest rates also rose after hitting recent lows. The pair faces resistance around 148 and the 10-day moving average at 148.88, so traders should be careful buying too high. That said, there have been many good day trading opportunities with all the volatility.
Gold
Gold broke below $3000, which had been an important support level. The move came after U.S. stocks avoided another big drop. For now, prices may move sideways or lower unless fear in the market rises again.
Bitcoin
Bitcoin dropped below $80,000, triggering some stop-loss selling early in the day. But it bounced back as stocks stabilized. Looking ahead, prices may try to move higher, but a sideways-to-upward trend seems most likely in the short term.
While Fear Remains, There Are Many Opportunities
Markets are still very nervous, but things didn’t get as bad as many feared. The outlook is still uncertain, and tariffs and trade talks will continue to drive headlines.
At the same time, volatility is creating many good trading opportunities, especially for short-term traders. When emotions are high, price swings get bigger — and that’s where traders can find their edge.
Stay focused, stay flexible, and watch for any signs of tariff relief or better news from negotiations. Even a small improvement in sentiment could lead to a strong market bounce.
Profit from Liberation Day with Titan FX
April 2 marks the start of Liberation Day — a major turning point in global markets. With new tariffs, shifting trade policies, and rising volatility across currencies, commodities, and equities, traders face both risk and opportunity. Whether you're trading FX, gold, indices, or crypto, Titan FX gives you the speed, tools, and tight spreads to stay ahead and make the most of this high-impact event.
Why Trade FX & CFDs with Titan FX Around Liberation Day?
✅ Ultra-Fast Execution – Stay ahead of sharp market movements in FX, indices, stocks, crypto, and commodities.
✅ Advanced Charting & Analysis Tools – Identify breakout points, trend shifts, and key trading levels with confidence.
✅ Trade Multiple Markets – From FX to gold, crude oil, stock indices, individual stocks, and crypto, trade it all from one platform.
✅ Secure and Flexible Funding – Focus on trading while we handle seamless deposits and withdrawals.
With markets moving at fast speed—tariffs reshaping global trade, central bank policies shifting currencies, and volatility presenting new opportunities daily—Titan FX ensures that you have the best execution, tight spreads, and cutting-edge tools to capitalize on every trading challenge.
Don’t just watch the action—profit from it. Start trading with Titan FX today!
