The stock market may be in a panic mode at the moment. Key indices are heading south, and clouds of doubt hang overhead due to new trade tariffs set to go into effect. The S&P 500 lost 1.53%, its fifth down week in only six. The Dow Jones Industrial Average fell by 0.96%, marking its third down week in four. On top of that, the Nasdaq Composite sank 2.59%, marking its fifth lower week in six as well. The Russell 2000, which lost 1.64% as well for its fifth adverse week in six, reflecting deep investor fear.
On Sunday evening, stock futures were getting slammed. S&P 500 futures were off by 0.7%, and Nasdaq 100 futures were down by 0.8%. Building faith in IIJA Investors are understandably waiting to see details on forthcoming trade tariffs. Some important discussion ought to occur, beginning shortly after April 2nd. Further complicating market volatility is the final scope, level, and timing of these tariffs, which is still uncertain.
On Wednesday, investors will receive more clarity on exactly which of their trading partners will be hit by the new duties. They’ll learn not just how these impacts will affect them but how deeply. President Donald Trump has been remarkably cavalier over the potential price hikes delivered to foreign automakers by the tariffs. Too bad for his administration, he brazenly announced that he “couldn’t care less.”
It’s the tech-heavy Nasdaq Composite that’s been hardest hit, having tanked 8.1% on the week alone. Meanwhile, Emmanuel Cau, an equity strategist at Barclays, highlighted the broad agreement that has formed around concerns for trade tensions.
“Tariff risk has been well telegraphed and is largely priced in corners of the market. So liberation day may not be a complete shocker. However, no one wins from trade war, and clouds are gathering over the global growth outlook.” – Emmanuel Cau
Amidst these uncertainties, the March jobs report is anticipated on Friday, April 4, at 8:30 a.m. ET. We hope this report will debut to shed even more light on the reemergence of the U.S. economic landscape.