Markets spiraled to close the week due to a heavier than expected tariff policy. Are we in for a fight or will tensions subside?
Monday
S&P 500 0.55% | NASDAQ 0.14%
Little economic data was released on Monday and the S&P500 remained in correction territory. Buyers were gauging whether the bounce would occur to finish off a rough month.
Tuesday
S&P 500 0.38% | NASDAQ 0.87%
Trading was volatile on the day as the focus shifts towards the direction of tariff policies. March’s performance was poor, and April will be a new month filled with uncertainty of trade and inflation. We will see if corporate earnings will provide some clarity moving into mid-April.
Wednesday
S&P 500 0.67% | NASDAQ 0.87%
Markets responded positively on the day following favorable jobs data. Wednesday was dubbed “Liberation Day” with the White House’s announcement of tariffs on trade partners across the globe. The trading throughout the day didn’t have a chance to respond to the news as the press conference occurred after trading hours.
Thursday
S&P 500 4.84% | NASDAQ 5.97%
Markets plummeted the day after tariffs were announced. The sell-off was sparked by the magnitude of the tariffs. Uncertainty remains on their economic impact and traders were not taking the announcement lightly.
Friday
S&P 500 5.97% | NASDAQ 5.82%
Close your eyes! The sell-off would not relent as the tariff announcement from Wednesday continued to rattle markets. At the close, this 2-day decline proved to be the worst seen in almost 5 years. Bond yields tumbled as investors sought safety versus riskier assets.
Conclusion
S&P 500 9.08% | NASDAQ 10.02%
This week’s trading caused significant heartburn as trading went from bad to worse for major indexes. The S&P500 came close to entering the bear market (down 20% from previous highs) while the Nasdaq spiraled further. Markets were unenthusiastic about the prospect of a trade war. The economy, however, has showed signs of strength which the Federal Reserve Bank (FRB) touted in its remarks from Chairman Powell on Friday. There have been early signs of calls to lower the effective funds rate to prevent further downside risk but even the (FRB) is waiting for the dust to settle. Volatile times call for patience in a diversified approach and the trade levies should be treated no differently until outcomes become clearer.
~ Your Future… Our Services… Together~
Your interest in our articles helps us reach more people. To show your appreciation for this post, please “like” the article on one of the links below:
FOR MORE INFORMATION:
If you would like to receive this weekly article and other timely information follow us, here.
Always remember that while this is a week in review, this does not trigger or relate to trading activity on your account with Financial Future Services. Broad diversification across several asset classes with a long-term holding strategy is the best strategy in any market environment.
Any and all third-party posts or responses to this blog do not reflect the views of the firm and have not been reviewed by the firm for completeness or accuracy.