The recent trading weeks have shown a dramatic tightening of the risk sentiment in global stock markets. Triggers included, among other things, protectionist measures and interest rate decisions that led to a massive sell-off.
Main Drivers of the Current Selling Wave
- US Tariff Announcements: The blanket base tariffs (10% on all imports) announced by Donald Trump, as well as punitive tariffs for countries with trade deficits, triggered a historic market crash on April 4, 2025. The S&P 500 lost nearly 6%, and the Nasdaq dropped by 6% – the largest daily losses since the onset of the Corona pandemic.
- Fed Rate Cut: Despite an expected key interest rate cut of 0.25% by the US Federal Reserve, uncertainty remains high. Investors fear a prolonged period of weakness, especially in the technology sector.
Affected Stocks and Sectors
Although specific individual stocks are not detailed in the available sources, analyses indicate the following patterns:
- Technology Stocks: The Nasdaq, as the leading index for tech stocks, recorded disproportionate losses (–6%), indicating a sell-off in this sector.
- Export-Dependent Companies: Higher tariffs particularly burden companies with global supply chains, such as automobile manufacturers or industrial stocks.
- Telecommunications: Deutsche Telekom’s stock shows short-term weaknesses despite an intact upward trend – an indication of profit-taking after rallies.
Strategic Recommendations for Investors
Experts currently recommend defensive measures:
- Taking profits at highs, as in the case of Deutsche Telekom, where despite a +18% forecast, short-term sales dominate.
- Focus on stability stocks, such as those from the utility sector or consumer-oriented industries with low cyclicality.
- Monitoring the central bank communications of the Fed and ECB to assess further interest rate movements.
The market is in a phase of extreme volatility, with political risks (trade wars) and monetary policy uncertainties holding buyers back – a “toxic mix” according to stock market expert Oldenburger.