I felt much longer, but the US securities market needed only a few weeks to wander all the way to where President Donald Trump was on the “liberation day” of President Donald Trump. This is whenWall Street shockedBy advertisingA more severe tariffIt was expected for almost all trading partners in the United States.
These definitions, which were unveiled on April 2, were so severe that they raised concerns that Trump did not worry about causingrecessionIn his attempt to reshape the global economy. Within just four days, S & P 500About 12 % decreasedand Dao The average of the industrial Jones lost approximately 4,600 points, or about 11 %.
Last Friday, though, S & P 5001.5 % gathered to achieve the ninth gain in a rowShe withdrew to where he was on April 2.
Of course, the index is still at the heart of many accounts of 401 (K) less than 7 % less than its high group ever earlier this year. The stocks can easily decrease again because the uncertainty is still high about what the Trump tariff will eventually do the economy. But ran for us the stocks again was from the wild and unexpected like their fall. This is a look at what happened:
pause
On April 9, Trump announced on social media “stopping for 90 days” for most of the definitions he announced a week ago, except for that against China. S&P 500 increased by 9.5 % for one of its best days. Even this good news came with a little controversy, but:Hours before a temporary stop announcementTrump announced the social truth that “this is a great time to buy.”
Canceling the escalation
The weeks that followed temporarily were the rotating ship. Trump talked about negotiating the customs tariffs with commercial partners while using a customs tariff to force companies to transfer manufacturing to the United States, and they are at odds with each other. The market has found comfort in what the Treasury Minister referred to as the cancellation of the escalation between the United States and China. Investors also welcomed Trump’s moves to alleviateDefinitions on carsAs well as smartphones and other electronics.
Books and buck
The intensity of the decline in the stock market in the United States surprised after the liberation day some market monitors. They assumed that Trump would back down from policies that hurt the Dow Jones industrial average. This is a president, after all, who has over and over again during his first term on how Dao was established.
But fear was in other financial markets that may have forced Trump’s hand. Low prices of US government bondsFear fearsThe US Treasury market was losing its position as the best place in the world to maintain money. The value of the United StatesThe dollar also drownedAnother reference to the decrease in belief in the United States as a safe haven for investors.
Trump himself said that he noticed how bond investors “get a little” before he temporarily stopped being nurtured.
Economy
Economists and investors had to reconcile the contradictory signals on the economy. Consumer polls have shown a decline in confidence, due to the uncertainty resulting from Trump’s commercial policy. But what investors call “solid data”, such as employment numbers, indicated that the economy is still fine. As of Friday, when the government saidEmployers added 177,000 jobsIn April, difficult numbers seemed to have a advantage over weak feelings.
Federal Reserve Bank
The Federal Reserve reduced rates three times at the end of 2024, but then implemented a temporary stop by maintaining fixed rates, partly to assess the impact of Trump’s commercial policy. It seems that the strong job report gives the FBI permit to maintain their prices at the present time – although Trump repeats his call for discounts – but the market is still looking for 3 discounts before the end of the year.
A lot of profits
Through all the turmoil in the market, American companies continued to submit profit reports to the beginning of the year that topped analysts’ expectations. Stock prices tend to follow profits in the long run, and this gives the market a noticeable boost.
Three out of four companies in the S&P 500 have won the expectations of analysts to get profits in recent weeks, including these heavy weights in the market, such asMicrosoft and Meta platforms. They are on the right way to achieve approximately 13 % growth from the previous year, according to FactSet.
certainly
Even with companies achieving accurate profits from what was expected,Many also warned that they are not sureWhether it can continue. Executive heads were either lowering or withdrawing their financial expectations for this year, given each state of uncertainty about how Trump’s tariff ended.
United AirwaysUntil the extraordinary step of providing separate predictions for this year: one if there is a recession, and one if not.
Trump’s indirect approach to customs tariffs has made this time the most volatile market since the beginning of the epidemic. A temporary stop in its fourth week and the administration did not announce an agreement with any of the American merchant partners. Based on his recent comments, Trump is still comprehensive on the definitions, so stopping can be temporary.
“We have already seen how the financial markets will interact if the administration advances forward with its initial tariff plan, so unless they take a different assistant in July when the stopping period ends for 90 days, we will see a similar action for the first April week,” said Chris Zakarili, chief asset employee in North Light.
This story was originally shown on Fortune.com
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