Trump Promises Big Gains After Tariff Turmoil
With the U.S.s sweeping reciprocal tariffs on 185 countries now officially in effect, Trump posted a message to reassure the public, writing, BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!
Stock Market Struggles and Treasury Yield Spike
Despite Trumps attempt to instill confidence, the markets faced challenges. The S&P 500 was struggling to recover after a sharp sell-off that had pushed it dangerously close to bear market territory. In the Treasury market, the 10-year yield saw its biggest three-day jump since December 2001, raising concerns among investors about potential risks in the global financial system.
Retaliatory Tariffs from China and Market Outlook
As tensions escalated, China retaliated with a 84% tariff on U.S. imports, just as the Trump administration followed through on its threat to impose 104% duties on Chinese exports. Wall Street remained on edge, fearing that the shifting trade dynamics could lead to a self-inflicted recession.
In a follow-up post, Trump took to Truth Social again, suggesting that the markets current downturn presents a great opportunity to buy.
Investors Eye S&P 500 Dip as a Buying Opportunity
Some strategists see a dip below the 5,000 mark for the S&P 500 as a potential buying opportunity, particularly after one of its worst two-day stretches. Goldman Sachs John Flood noted that long-term investors may start purchasing aggressively once the index drops to 5,000 and beyond. However, others, like Michael Kantrowitz of Piper Sandler, emphasize that the markets recovery hinges on a shift in the tone of rhetoric, as this situation is unprecedented and does not fit historical patterns.
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