Trading results for 3 April 2025
3 April can rightfully be called a red-letter day. Understandably so – what else could it be after what President Trump pulled off on his so-called “Liberation Day”? It seems market participants took him literally and began liberating their portfolios of shares. We haven’t seen a sell-off of this scale since the Covid-19 crash in 2020. The result is the worst trading day in five years.
Stocks plummeted right from the opening bell – or rather, from the moment of Trump’s evening speech on Wednesday until the final gong. Only 95 out of the 503 companies in the S&P 500 index ended the day in the green. And in the Dow Jones (DJIA-30), the number was just 7 out of 30. Not exactly a sign of market strength.
Even amidst the market-wide rout, there were still a few green spots – select stocks fared slightly better than others. One economic sector even managed to close the day in positive territory. Unsurprisingly, it was the Consumer Defensive sector – companies producing essential goods tend to hold up best when the market is on fire. On average, stocks in this segment gained 0.49%. But yesterday, they were more the exception than the rule.
All other sectors ended the day in the red – some deeply so. The tech sector, for example, sank an average of 7%. Pure chaos. Only one tech company managed to stay afloat: Intel (INTC). And to be fair, there was a good reason for its rise.
On Thursday morning, it was reported that Intel and Taiwan Semiconductor (TSMC) had reached a preliminary agreement that could significantly impact the long-term outlook of the U.S. semiconductor industry. According to the report, TSMC plans to acquire a 20% stake in Intel’s chip manufacturing unit, turning it into a joint venture. Under the deal, TSMC would share key trade secrets and help Intel manage its foundry operations – in exchange for a substantial share of the business.
Still, things aren’t as straightforward as they might seem. Although preliminary terms of the partnership have reportedly been agreed upon, considerable uncertainty remains about how Intel and TSMC will work together. Nevertheless, TSMC’s involvement – as the undisputed global chipmaking leader – would be a major win for Intel. It’s likely that the deal will be approved by U.S. regulators. With growing demand for chip production, especially for high-margin AI chips, partnering with TSMC might offer Intel a real chance to climb out of its slump and compete in this high-growth space.
So how did the indexes fare on this turbulent and painful day? All plunged – that's a fact. Losses were severe, almost too scary to mention. Dow Jones fared the best (relatively speaking), dipping nearly 4% (-3.98%). The benchmark S&P 500 lost around 5% (-4.87%). But the biggest loser of the day was, predictably, the NASDAQ Composite, which dropped by almost 6% (-5.97%).
As for the ITS index family, their results looked outstanding by comparison. The ITS Shariah Index of Islamic-compliant securities fell just 1.4%, while the ITS World Index (ITSW) of global companies slipped by a symbolic 0.28%. It’s worth noting, however, that both had already taken a hit of nearly 3% the day before – while the U.S. markets had ended that session in the green.
And finally, to lighten the mood a bit – here’s a fun little observation. It’s long been noted that during sell-offs, investors tend to flock to cigarette makers (to calm their nerves), pharma companies (to pop some pills), and soft drink producers (to wash it all down with a Coke).
So, it’s no surprise that the top performers in the ITS World Index (ITSW) yesterday were British American Tobacco (BTI), U.S. health insurance leader United Health (UNH), and pharmaceutical giants AstraZeneca (AZN), Takeda Pharmaceuticals (TAK), and Novartis (NVS).
What’s missing from the mix? Right – a glass of cola. And sure enough, both Coca-Cola (KO) and PepsiCo (PEP) ended the day in the green – though they belong to a different index, ITSS. Still, nothing’s stopping investors from holding both. ETFs tracking these indexes are actively traded, after all. So, investors have something to smoke, something to swallow, and something to sip as they reflect on their losses. All jokes aside – while the sell-off was harsh, we’re far from disaster. Let’s hold the line and keep hoping for better days.