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JPMorgan Chase: Predicts a US economic recession in 2025.

On April 5, Federal Reserve Chairman Powell made it clear that the Fed will not rush to respond to the comprehensive tariffs imposed by the Trump administration, nor will it respond to the financial market turmoil caused by concerns about a global recession. Powell said at a conference in Virginia on Friday that tariffs could have a significant impact on the US economy, including slower growth and higher inflation. But he added that Fed officials will wait until these policies are clearer before cutting interest rates. He also emphasized that with inflation still high, the central bank has an obligation to ensure that the temporary increase in prices caused by tariffs does not turn into a more lasting increase. "The Fed cant insure the economy as it did in the trade war in 2018 and 2019 because inflation is too high and above their target," said Julia Coronado, founder of research firm MacroPolicy Perspectives. She believes there will be a recession in the second half of this year. "Even if they conclude that they need to cut interest rates, they may cut interest rates later and slower because we will be in the inflationary impulse."

Russian drones carried out a "large-scale" attack on Krivoy Rog, Ukraine, following a missile strike, local Ukrainian officials said, starting fires at four locations.

On April 5, JPMorgan analyst David Lebovitz said that the U.S. stock market has hit a low buying range because he believes that the United States will still avoid a tariff-induced recession. Lebovitz has been waiting for the S&P 500 to hit 5,100 points, and the index fell below that level on Friday afternoon. He is far from being "fully betting" on the U.S. stock market and believes that the risk of a U.S. recession is rising. But Lebovitz said he might take advantage of the recent stock market sell-off to increase positions modestly at current trading levels. "The cheaper the stock, the more interested we are," Lebovitz said. "In the long run, underweight stocks in non-recession years tend not to work well from a return perspective."

According to the Washington Post: The IRS will cut 25% of its staff.

Meta Platforms (META.O) plans to invest nearly $1 billion in a data center project in Wisconsin.

The CBOE Volatility Index rose 15.29 points to close at 45.31, its highest closing level since April 2020.

The U.S. National Tsunami Center: A tsunami warning has been issued after a 7.2-magnitude earthquake struck the New Britain region of Papua New Guinea.

Barclays: The Feds forecast for rate cuts in 2026 has been lowered from three to two, each by 25 basis points. Economist Marc Giannoni and others still expect the FOMC to cut interest rates by 25 basis points in June and September this year, but such an interest rate path is very uncertain.

According to the German Geoscience Research Center GFZ: A 6.75-magnitude earthquake occurred in the New Britain region of Papua New Guinea.

April 5th, Berkshire Hathaway said on Friday that reports on social media about the companys chairmans alleged remarks were "false." Earlier, US President Trump shared a video on social media suggesting that Warren Buffett supports the US Presidents economic policies. The video was posted by a user named American PapaBear, saying that Trump deliberately "smashed" the market to force the Federal Reserve to lower interest rates while making stocks more affordable for middle-class investors. The video also mentioned that this is why Warren Buffett just said that Trump is taking the best economic initiative he has seen in 50 years. Berkshire said in a statement: "There are currently reports circulating on social media that are alleged to be remarks made by Warren Buffett. All of these reports are false."

On April 5, the Russian Ministry of Defense said that at 18:49 Moscow time on April 4, the Russian army launched a high-precision missile with a high-explosive warhead at a hotel in Krivoy Rog, Dnipropetrovsk Oblast (called Krivykh in Ukraine) where a Ukrainian commander met with Western instructors. The Russian Ministry of Defense said that the attack killed as many as 85 foreign soldiers and officers and damaged 20 vehicles. Earlier that day, Ukraines Pravda reported that Russian ballistic missiles attacked a residential area center in Krivykh that day, causing many casualties.

The S&P 500, Nasdaq and Dow Jones suffered their biggest weekly percentage declines since March 2020.

The Dow Jones Industrial Average closed at 38,314.86 on April 4 (Friday), down 2,231.07 points, or 5.50%. The S&P 500 closed at 5,074.08 on April 4 (Friday), down 322.44 points, or 5.97%. The Nasdaq Composite closed at 15,587.79 on April 4 (Friday), down 962.82 points, or 5.82%.

The S&P 500, Nasdaq Composite and Dow Jones all posted their biggest two-day declines since March 2020.

April 5th news: This week, the S&P 500 fell 9.08%, the Nasdaq fell 10.02%, the Dow Jones fell 7.86%, and the Russell 2000 small-cap index fell 9.70%.

U.S. stocks extended their losses in late trading, with the S&P 500 index falling 6%, the Nasdaq down 5.69% and the Dow down 5.43%.

The Russian Ministry of Defense: Missiles have been launched at a gathering point of Ukrainian officers and Western instructors in a restaurant in Krivoy Rog. Up to 85 soldiers and foreign officers were killed.