Today's War Room Trading Recap

Overnight Reaction: Markets headed into the morning under heavy pressure after reciprocal tariffs were announced in response to last week’s trade escalation. Futures sold off across the board, with the Nasdaq leading the decline. Asian and European markets followed suit, setting the tone for a risk-off U.S. open.

At the Open: The major indexes gapped down sharply, with selling pressure accelerating in the first 30 minutes of trade. High-beta tech names and industrials with international exposure were hit hardest. Defensive sectors briefly caught a bid but couldn’t hold gains as the broader market continued to slide.

Powell’s Speech: Fed Chair Jerome Powell took the stage mid-morning with remarks aimed at easing market concerns. But instead of calming investors, his vague comments on inflation “remaining sticky” and a “watchful policy stance” added fuel to the fire. Traders were clearly looking for stronger support or rate-cut signals—and didn’t get them.

Afternoon Price Action: Markets attempted a minor rebound on dip-buying around midday, but sellers quickly regained control. By the close, the indexes were near session lows, with the Dow down over 500 points and the Nasdaq off more than 2.5%. Volatility spiked, and volume surged—clear signs that institutions were active on the sell side.