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Yahoo
08-04-2025
- Business
- Yahoo
Wall Street's tariffs rout resumes after morning rebound fails
(Reuters) - The S&P 500 closed below 5,000 points for the first time in almost a year, reversing a strong morning rally as hopes faded for any imminent U.S. delays or concessions on tariffs ahead of a midnight deadline. The benchmark index fell 1.6% on Tuesday marking a $5.8 trillion loss in market value since President Donald Trump unveiled hefty global tariffs against U.S. trading partners on Wednesday. This represented more than 12% for its biggest four-day percentage decline since the pandemic. By finishing almost 19% below its record close on Feb. 19, it also was on the cusp of a 20% selloff that would denote a bear market. The Dow Jones Industrial Average fell 0.84%, while the Nasdaq Composite 2.15%. COMMENTS: MARK MALEK, CHIEF INVESTMENT OFFICER, SIEBERT FINANCIAL, NEW YORK 'It's not good, this kind of market close. Even though the rally lost steam in the afternoon, we could have, should have had a better close. Stocks have already factored in a trade war and there wasn't enough new news to knock the market down further by changing what is already priced in materially. There are going to be a lot of technical traders tonight scratching their heads.'But I'm still slightly positive, which is rare for me recently. I think the body language coming from the administration signals that they'd rather negotiate, that the 104% tariffs on China we heard about later in the session are a negotiating tactic.' PETER TUZ, PRESIDENT, CHASE INVESTMENT COUNSEL CORP, CHARLOTTESVILLE, VIRGINIA "Early in the day, the market kind of had some indication that there might be a quicker fix to the tariff issue than we thought last week. But as the day wore on and the news came out, that thought went away and uncertainty about everything -- earnings, tariffs -- going forward just grew again and the market sold off." "I don't even know how you begin to make an (earnings) estimate for a lot of companies right now. ... So I just view any earnings estimate made right now for a lot of companies and for the S&P 500 as fraught with huge potential for change, probably to the downside. And it's just hard to put a value on the market in many stocks until you have some comfort in the earnings going forward." CHRIS GRISANTI, CHIEF MARKET STRATEGIST, MAI CAPITAL MANAGEMENT, NEW YORK 'I found the market reaction today troubling. Of course, we were elated to see the strong market this morning, and then making this finish that much worse, because it took our joy and turned it into sorrow. 'But on a more technical level, it makes a lot of sense to me, because how can you really make meaningful investments at this stage when there's so much uncertainty? I think you need a level of humility here to be able to admit that there's a lot of stuff we just don't know. I strongly think, at this point, 'caution' is the better watch word, rather than 'looking for opportunities'. 'I think it will be difficult for the economy to avoid a recession, even if the tariffs disappeared tomorrow. Because I think things are very seized up, meaning things are not moving because the businesses, especially, don't know what decisions to make. So, they're just not making any decision. So, I think we're just about beyond the point of no return. We're going to start seeing first quarter numbers starting on Friday, I wouldn't be at all surprised to see companies pulling guidance left and right that they gave in January. There's a lot of bad stuff that still has the potential to happen over the next couple of weeks.' (Compiled by the Global Finance & Markets Breaking News team) Sign in to access your portfolio
Reuters
08-04-2025
- Business
- Reuters
Wall Street's tariffs rout resumes after morning rebound fails
April 8 (Reuters) - The S&P 500 closed below 5,000 points for the first time in almost a year, reversing a strong morning rally as hopes faded for any imminent U.S. delays or concessions on tariffs ahead of a midnight deadline. The benchmark index (.SPX), opens new tab fell 1.6% on Tuesday marking a $5.8 trillion loss in market value since President Donald Trump unveiled hefty global tariffs against U.S. trading partners on Wednesday. This represented more than 12% for its biggest four-day percentage decline since the pandemic. By finishing almost 19% below its record close on Feb. 19, it also was on the cusp of a 20% selloff that would denote a bear market. The Dow Jones Industrial Average (.DJI), opens new tab fell 0.84%, while the Nasdaq Composite (.IXIC), opens new tab 2.15%. MARK MALEK, CHIEF INVESTMENT OFFICER, SIEBERT FINANCIAL, NEW YORK 'It's not good, this kind of market close. Even though the rally lost steam in the afternoon, we could have, should have had a better close. Stocks have already factored in a trade war and there wasn't enough new news to knock the market down further by changing what is already priced in materially. There are going to be a lot of technical traders tonight scratching their heads. 'But I'm still slightly positive, which is rare for me recently. I think the body language coming from the administration signals that they'd rather negotiate, that the 104% tariffs on China we heard about later in the session are a negotiating tactic.' PETER TUZ, PRESIDENT, CHASE INVESTMENT COUNSEL CORP, CHARLOTTESVILLE, VIRGINIA "Early in the day, the market kind of had some indication that there might be a quicker fix to the tariff issue than we thought last week. But as the day wore on and the news came out, that thought went away and uncertainty about everything -- earnings, tariffs -- going forward just grew again and the market sold off." "I don't even know how you begin to make an (earnings) estimate for a lot of companies right now. ... So I just view any earnings estimate made right now for a lot of companies and for the S&P 500 as fraught with huge potential for change, probably to the downside. And it's just hard to put a value on the market in many stocks until you have some comfort in the earnings going forward." CHRIS GRISANTI, CHIEF MARKET STRATEGIST, MAI CAPITAL MANAGEMENT, NEW YORK 'I found the market reaction today troubling. Of course, we were elated to see the strong market this morning, and then making this finish that much worse, because it took our joy and turned it into sorrow. 'But on a more technical level, it makes a lot of sense to me, because how can you really make meaningful investments at this stage when there's so much uncertainty? I think you need a level of humility here to be able to admit that there's a lot of stuff we just don't know. I strongly think, at this point, 'caution' is the better watch word, rather than 'looking for opportunities'. 'I think it will be difficult for the economy to avoid a recession, even if the tariffs disappeared tomorrow. Because I think things are very seized up, meaning things are not moving because the businesses, especially, don't know what decisions to make. So, they're just not making any decision. So, I think we're just about beyond the point of no return. We're going to start seeing first quarter numbers starting on Friday, I wouldn't be at all surprised to see companies pulling guidance left and right that they gave in January. There's a lot of bad stuff that still has the potential to happen over the next couple of weeks.'
Yahoo
03-04-2025
- Business
- Yahoo
US investors caught off-guard by depth of tariffs are braced for more pain
By Suzanne McGee (Reuters) - Investors had been prepared for a shock heading in to U.S. President Donald Trump's announcement of sweeping new tariffs on Wednesday, but many said that what played out was the worst-case-scenario for markets. Their message: Buckle up and brace yourself. In the run-up to what Trump had billed as "Liberation Day," investors had sought to remain optimistic that clarity about the administration's tariff policies would help the volatile U.S. stock market stabilize. But following Trump's unveiling of what some said were larger-than-anticipated tariffs - and in the midst of the market selloff that followed - many of the same individuals said their main takeaway was a sense of heightened risk and plenty of unanswered questions. "This is bigger than I expected; bigger than anyone really expected," said Mark Spindel, chief investment officer of Potomac River Capital. "And the market is reacting accordingly." Global markets tumbled on Thursday, with the dollar and U.S. stocks among the hardest hit on fears that a broadening trade war would push an already fragile world economy into recession. Reuters talked to a range of investors over the last week, before and after the announcement. Here are some of their views: MARK MALEK, CHIEF INVESTMENT OFFICER, SIEBERT FINANCIAL: Before the tariffs announcement: 'There's more potential downside than upside right now.' After the tariffs announcement: "Brace yourself, because here comes the downside. This is a lot more than the market was expecting, if you look at the size of the tariffs. This is going to have a material impact on corporate earnings. I can't imagine any company isn't recalibrating earnings expectations for the full year." MICHAEL ARONE, CHIEF INVESTMENT STRATEGIST, STATE STREET GLOBAL ADVISORS: Before: 'There is potential for more volatility on April 2 and post that deadline. I am still skeptical we will get clarity.' After: "Clearly, markets are still unhappy with the current trade policy. And everyone is still on hold - businesses, consumers, the Fed - to see how things play out. I think anything that offers a hedge against inflation risk should do better, such as gold and hard assets." ANGELO KOURKAFAS, SENIOR INVESTMENT STRATEGIST, EDWARD JONES Before: April 2 will probably not 'completely really clear out all the uncertainties that potentially still remain.' After: "The takeaway is that the tariffs announced are closer to the more aggressive side of the spectrum. The uncertainty will remain. How will other countries respond? Some uncertainty will linger in the weeks to come as this plays out. It just is reinforcing the benefits of a diversified portfolio." MARK SPINDEL, CHIEF INVESTMENT OFFICER, POTOMAC RIVER CAPITAL: Before: "I think the market is really holding its breath and ... trying to convince itself, maybe incorrectly, that we've seen the lows." After: "The market's initial reaction just underscores the fact that the tariffs are huge. If we thought this was the end of having to think about tariffs, we were wrong. We don't know what went into Trump's spreadsheet calculations of these rates. But the bottom line is that this is inflationary, and the odds of a recession have gone up." JASON BRITTON, CHIEF INVESTMENT OFFICER, REFLECTION ASSET MANAGEMENT: Before: "Whatever comes next may lack detail and specificity and that will drive the market crazy. But there's a chance we'll end up with a sigh of relief in spite of more volatility." After: "If you really parse the information, I think people will digest this and see it as a mixed bag, probably not as bad as it has been portrayed. If the big tech companies sitting on enormous amounts of cash are going to get pinched, I'm a buyer on weakness. It's just the market over-reacting and I'm happy." ROBERT PAVLIK, SENIOR PORTFOLIO MANAGER, DAKOTA WEALTH: Before: 'I think they're going to start shifting gears and move from tariffs … There will be more emphasis on the tax talk.' After: "Taxes may be the next thing he (Trump) thinks about. But tariffs unfortunately don't seem to be going away soon as an issue. What will other countries do in retaliation? How will this affect U.S. corporations and U.S. consumers? It's going to be difficult for investors going forward; I expect the (volatility index) to starting moving even higher, possibly above 30."
Reuters
03-04-2025
- Business
- Reuters
US investors caught off-guard by depth of tariffs are braced for more pain
April 3 (Reuters) - Investors had been prepared for a shock heading in to U.S. President Donald Trump 's announcement of sweeping new tariffs on Wednesday, but many said that what played out was the worst-case-scenario for markets. Their message: Buckle up and brace yourself. In the run-up to what Trump had billed as "Liberation Day," investors had sought to remain optimistic that clarity about the administration's tariff policies would help the volatile U.S. stock market stabilize. But following Trump's unveiling of what some said were larger-than-anticipated tariffs - and in the midst of the market selloff that followed - many of the same individuals said their main takeaway was a sense of heightened risk and plenty of unanswered questions. "This is bigger than I expected; bigger than anyone really expected," said Mark Spindel, chief investment officer of Potomac River Capital. "And the market is reacting accordingly." Global markets tumbled on Thursday, with the dollar and U.S. stocks among the hardest hit on fears that a broadening trade war would push an already fragile world economy into recession. Reuters talked to a range of investors over the last week, before and after the announcement. Here are some of their views: MARK MALEK, CHIEF INVESTMENT OFFICER, SIEBERT FINANCIAL: Before the tariffs announcement: 'There's more potential downside than upside right now.' After the tariffs announcement: "Brace yourself, because here comes the downside. This is a lot more than the market was expecting, if you look at the size of the tariffs. This is going to have a material impact on corporate earnings. I can't imagine any company isn't recalibrating earnings expectations for the full year." MICHAEL ARONE, CHIEF INVESTMENT STRATEGIST, STATE STREET GLOBAL ADVISORS: Before: 'There is potential for more volatility on April 2 and post that deadline. I am still skeptical we will get clarity.' After: "Clearly, markets are still unhappy with the current trade policy. And everyone is still on hold - businesses, consumers, the Fed - to see how things play out. I think anything that offers a hedge against inflation risk should do better, such as gold and hard assets." ANGELO KOURKAFAS, SENIOR INVESTMENT STRATEGIST, EDWARD JONES Before: April 2 will probably not 'completely really clear out all the uncertainties that potentially still remain.' After: "The takeaway is that the tariffs announced are closer to the more aggressive side of the spectrum. The uncertainty will remain. How will other countries respond? Some uncertainty will linger in the weeks to come as this plays out. It just is reinforcing the benefits of a diversified portfolio." MARK SPINDEL, CHIEF INVESTMENT OFFICER, POTOMAC RIVER CAPITAL: Before: "I think the market is really holding its breath and ... trying to convince itself, maybe incorrectly, that we've seen the lows." After: "The market's initial reaction just underscores the fact that the tariffs are huge. If we thought this was the end of having to think about tariffs, we were wrong. We don't know what went into Trump's spreadsheet calculations of these rates. But the bottom line is that this is inflationary, and the odds of a recession have gone up." JASON BRITTON, CHIEF INVESTMENT OFFICER, REFLECTION ASSET MANAGEMENT: Before: "Whatever comes next may lack detail and specificity and that will drive the market crazy. But there's a chance we'll end up with a sigh of relief in spite of more volatility." After: "If you really parse the information, I think people will digest this and see it as a mixed bag, probably not as bad as it has been portrayed. If the big tech companies sitting on enormous amounts of cash are going to get pinched, I'm a buyer on weakness. It's just the market over-reacting and I'm happy." ROBERT PAVLIK, SENIOR PORTFOLIO MANAGER, DAKOTA WEALTH: Before: 'I think they're going to start shifting gears and move from tariffs … There will be more emphasis on the tax talk.' After: "Taxes may be the next thing he (Trump) thinks about. But tariffs unfortunately don't seem to be going away soon as an issue. What will other countries do in retaliation? How will this affect U.S. corporations and U.S. consumers? It's going to be difficult for investors going forward; I expect the (volatility index) to starting moving even higher, possibly above 30."
