Hello, investors!
As we head into the second week of April, let’s first recap the major developments from last week before diving into the key events, earnings, and outlooks for the upcoming week.
🔙 A Look Back: Last Week's Recap (Apr 1–5)
1. U.S. Market Plunges Amid Trade War Escalation
China announced a 34% retaliatory tariff on all U.S. imports, set to take effect on April 10. This move significantly escalated trade tensions between the two countries, sending shockwaves through the market.
All three major U.S. indices plunged over 5%, with the Nasdaq falling 5.82%, marking its worst daily loss since the pandemic.
2. Fed Warns of Inflation Risk, Mixed Labor Market Signals
The Federal Reserve cautioned that escalating tariffs could further stoke inflation and slow economic growth.
The March nonfarm payrolls came in strong at +228,000 jobs, beating expectations, but the unemployment rate ticked up slightly to 4.2%, reflecting a mixed labor outlook.
3. Tech Stocks Take a Hit
Tech giants heavily reliant on the Chinese market were hit hard.
Tesla (-10.46%) and Apple (-7.27%) were among the biggest losers amid fears of declining Chinese sales.
🔮 What to Watch This Week (Apr 8–12)
1. U.S.-China Tariffs Go Live This Week
- China’s 34% retaliatory tariffs are scheduled to go into effect on April 10.
- Markets will closely watch the actual economic impact and any potential countermeasures from the U.S. administration.
- This development is expected to weigh heavily on both supply chains and investor sentiment.
2. U.S. Earnings Season Officially Begins
The Q1 earnings season kicks off this week, with major U.S. financial institutions leading the way. Investors will be watching for guidance on how firms are navigating economic uncertainty.
[Key U.S. Earnings - This Week]
- Wed, Apr 9: Delta Air Lines (DAL)
- Thu, Apr 10: Constellation Brands (STZ)
- Fri, Apr 11: JPMorgan Chase (JPM), Citigroup (C), Wells Fargo (WFC), BlackRock (BLK)
Financial earnings will serve as key indicators of consumer credit trends, business lending, and the broader interest rate outlook.
3. Korea’s Earnings Season Also Underway
Korean corporations are also beginning to release Q1 results, including a mix of consumer, logistics, and retail firms.
[Key Korea Earnings - This Week]
- Mon, Apr 7: Samsung Electronics (Preliminary Results)
- Tue, Apr 8: LG Household & Health Care
- Wed, Apr 9: HMM, CJ CheilJedang
- Thu, Apr 10: Hanssem, Hyundai Department Store
- Fri, Apr 11: Shinsegae, NCSoft
4. Key Fed Speeches on Tap
A number of Fed officials are scheduled to speak this week, including Raphael Bostic and Mary Daly.
Their remarks on inflation and trade war risks could sway market sentiment, especially ahead of the CPI release.
5. Major Economic Indicators Ahead
- Wed, Apr 9: U.S. Consumer Price Index (CPI)
- Thu, Apr 10: Initial Jobless Claims
- Fri, Apr 11: U.S. Producer Price Index (PPI)
The CPI will be crucial in shaping expectations for Fed policy. A hotter-than-expected print could reignite rate hike fears.
💡 Investment Strategy & Risk Management
✅ Reassess Risk Exposure
With trade tensions escalating, increasing your allocation to cash or defensive sectors may help stabilize portfolios.
✅ Watch for Forward Guidance
Q1 earnings guidance will be key in assessing the real impact of tariffs and economic uncertainties.
✅ Brace for Volatility
High volatility is expected throughout the week. Stick to a long-term approach with dollar-cost averaging and diversified positions.
✅ CPI & Fed Commentary in Focus
Ahead of the CPI data and Fed speeches, consider trimming positions or hedging to reduce exposure to short-term fluctuations.
✅ Final Thoughts
The second week of April brings a critical convergence of risks and catalysts—from the official start of the U.S. earnings season to the real-world implementation of tariffs in the U.S.-China trade dispute.
We strongly encourage all investors to review their portfolios, maintain discipline, and stay informed.
Wishing you a week of smart decisions and successful investments!