Trump’s trade measures announced after the closed bell on Wall Light Street on Wednesday were more serious than the expectation of many investors. All of them imposed a lot of duties on some countries. Includes 10% baseline levy on imports.
Investors worried that trade partners could take revenge, one says that the economic “doom spiral” could be done.
“We US,” said Michael Reynolds, vice president of Glenmade’s investment strategy, Philadelphia’s investment strategy. We are talking about a very significant governance change in how global trade reaches. “And when you have a change of rule like this that happens suddenly … it doesn’t surprise us by seeing the reaction of a relatively violent market.”
With the possibility of prices in the already slow US economy, which depends on the customer for growth, investors believe in a lot of possibility of a recession.
“He just leaves everyone in shock,” added that “many pains, possibly, will be very intense in the US,” said Garret Melson, a portfolio strategist of the Netics Investment Managers Solutions in Boston, and it will surely be very intense in the US.
Many investors hoped that Trump’s expected declaration would clear the uncertainty on the tariff policy that has set up markets for weeks, but Melson pointed out that investors were still struggling with many unanswered questions.
“We have details but there is no clarity,” he said. “We have numbers and we have an idea of ​​how we got that number … but we do not know how long this will stick. We do not know if there is really no scope for negotiations.”
So far, VasHington Shington has said that the base will be implemented at the rates rates on April 5 and April 9.
Tariffs of 25% were affected at midnight on vehicle imports. The new recovery includes 34% tariffs on imports from China, 46% on Vietnam, 24% on Japan and 20% on Europe.
St. James Place Chief Investment Officer Justin Onukwussi said Trump’s tariffs are likely to take revenge, “but it is clear that clear countries will consider how to replace it politically.”
“Significant revenge can lead to a tariff ‘doom’s spiral’ that can be a shock of growth that draws us into a downturn.”
Trump called “Liberation Day” on Wednesday, but US investors sold with people from Asia and Europe. The Dollar Lir was drastically reduced against the main currency and the S&P fell more than 3% while the Nasdaq combined sank more than 4%.
US The 10-year yield in the Treasury has dropped to only 4%, which is their lowest level since the middle of October Catber.
On Wall L Street, the largest pull on the S&P 500 was a very valuable megacape investor’s favorite. The Apple Pal was about 8% and the Amazon.com was below, around 7%. Artificial intelligence chip leader Nvidia, sank about 6%.
Technol and G and consumer discretion, both below 5%, have declined in 11 major industries of S&P. The protective consumer staples field was the largest benefit, which was more than 1%.
European stock Stoksx 600 fell down 2.7%. The Euro was up 1.6% against the Dollar Lare.
This year, investors rally at the price of Fed Funds futures at the price of higher interest rates by the Federal Reserve.
The US de Dollar Ler Index sank at six months low against safe shelters, putting it down 2% against the yen and about 2.5% against Swiss Frank.
“This year it was expected that the administration would be bright for the US economy and difficult for the rest of the world,” said Hugh Gimber, a global market strategist at London’s JP Morgan Asset Management. “This policy mix in the US is more and more clear that it is more difficult for the US.”
‘Nobody likes what they see’
Ursula von der Lane, the head of the European Union, described Tariff as a major blow to the world’s economy and said that 27-member Blocks are ready to respond to Countermisors.
Trump spoke of “Ness Cheetah” in his speech and some investors saw the possibility of negotiations.
In China, which was braced for tariffs and where most of the income earns locally, sold in stocks and the currency was more accommodated.
Investors are clearly concerned about revenge by other governments that can lead to a global recession, “Senior Vice President of Wealthpire Advisors in New York.” “But we’ve learned even over the past few months … is not uncommon for the tariff (Trump) again and again. So we have to see how long the tariff lives.”
The market had already shocked about tariffs. The S&P 500 confirmed the correction in mid -March, which is a drop of 10% from the recent FROM Wow. With Thursday’s dive, the index was about 11% below its February record high.
“People were talking about whether people would extend the clarity market,” said Robertson Stephens Chief Economist Genet Guardy.
“But now you have clarity, and no one likes what they see.”
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