More volatility could be in store ahead of the April 9 deadline Trump set for his reciprocal global tariffs to take effect, after his Wednesday announcement of the levies sent markets into a tailspin, raising fears of a global recession, Reuters reported.
The benchmark S&P 500 lodged its biggest weekly drop since March 2020 and the Nasdaq Composite on Friday ended down more than 20 per cent from its December record high, confirming the tech heavy index is in a bear market. The Dow Jones Industrial Average finished the week down well over 10 per cent from its December record high, marking a correction for the blue-chip index, as per the report.
Investors will look for signs the stock market may be close to at least a short-term bottom after Trump’s tariffs rocked global asset prices this week, Reuters reported.
One sign of gloom: The Cboe Volatility Index, an options-based measure of investor anxiety, registered its highest closing level since April 2020. Bearish sentiment in the American Association of Individual Investors survey reached 61.9 per cent, its highest reading since 2009 during the financial crisis.
With tariffs clouding the outlook, investors are wary of dour financial forecasts as U.S. companies kick off quarterly reports in earnest in the coming week. S&P 500 earnings are expected to have climbed 7.8 per cent in the first quarter from the year ago period, according to LSEG IBES.Companies set to report next week include major banks JPMorgan and Wells Fargo due on April 11. Investors downgraded their economic and earnings forecasts, with JPMorgan analysts raising the risk of a global recession this year to 60 per cent from 40 per cent before.Some investors held out hope that Trump would negotiate deals in coming days with some countries that would roll back some of the tariffs. Others were dubious that Trump would make any concessions.
FAQs
Q1. What are key indexes of US Stock Market?
A1. Key indexes of US Stock Market are — S&P 500, Nasdaq, and Dow Jones.
Q2. What is deadline for Donald Trump’s tariffs?
A2. US President Donald Trump has set April 9 deadline for his reciprocal global tariffs to take effect.
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