The US bond market rallied yesterday amid rising fears that a global trade war is unfolding. The Vanguard Total Bond Market ETF (BND), a proxy for US government bonds and investment-grade credits, rallied to its highest level since September, fueled by a rush for safe havens amid a stock market rout on Thursday. US stocks, by contrast, suffered their worst daily loss on Thursday since 2020, with the steepest declines in tech and energy sectors.

China says it will implement a 34% tariff on all goods imported from the US starting on April 10. The announcement follows Washington’s decision to impose 34% of additional reciprocal levies on China.

US workers filing for unemployment benefits fell slightly last week, holding within the range that’s prevailed in recent years. Despite anxiety related to a radical policy shift in US trade policy, which may slow the economy, jobless claims — a leading indicator for the labor market — continue to reflect an upbeat outlook for payrolls.

In contrast with low level of US weekly jobless claims reported by the government, a private estimate of job cuts is surging relative to the year-ago level. Layoffs in the US spiked 205% in March vs. the same month in 2024, reports outplacement firm Challenger, Gray & Christmas.

US services sector growth slowed in March, downshifting to the weakest pace since June 2024. The 50.8 reading for last month is close to the neutral 50 mark, which suggests the sector is flirting with stagnation or worse in the months ahead as headwinds strengthen from the blowback of a global trade war.