Stocks waver as investors ponder what to make of rising economic uncertainty
For President Trump, The elasticity of tariffs The United States will release the U.S. “Liberation Day” in the country’s largest trading partner on April 2 as he describe Trade measures were carried out on social media on Thursday. To the Fed, as chairman of Jerome Powell on Wednesday, tariffs are a Broad-edge economic growth.
So where is it left to investors? Judging from today’s transaction, scratching your head. Stocks swing early, rebounded, and then lost momentum in the afternoon. The S&P 500 fell 12 points, or 0.2%, to 5,663, with the Dow Jones industrial average largely ending, and the Nasdaq Comprehensive dropped 0.3%.
After the Fed declares it’s a modest rebound in the stock market Stand nowas Wall Street expected. Indeed, as the U.S. has begun deploying tariffs on Canada, China, Europe, Mexico and other countries, investors may not have learned much from the central bank, and Powell’s remarks have begun to predict weak growth and higher inflation.
Powell’s principle of uncertainty
Another thing investors haven’t learned from the Fed: The world is a place of uncertainty before Mr. Trump was re-elected in November. Financial markets have plummeted this year as the White House enacted tariff plans, with the S&P 500 briefly falling into corrections, down 10% from its previous peak. The index has now fallen 8.4% since reaching its all-time high on February 19.
Nevertheless, if there is any persistent doubt that the country’s economic outlook is blurred, then Powell seems determined to crush them. Fed chair cites uncertainty in five times he prepares Comment There is another beat In the following press conference.
This uncertainty refers to questions about how the Trump administration’s economic agenda in terms of trade, immigration, fiscal policy and government regulation affects the economy.
Of course, for those who want to take out loans, it is certain that the Fed now prefers to assess the impact of these policies before lowering the benchmark interest rate.
Given the economic problems, although understandable, it could pose risks in itself, that is, the rate panel set by the central bank may wait too long before relaxing.
The Fed wasted its policy shifts as soon as it was possible that raising rates earlier during the pandemic could help get rid of rising inflation.
To be sure, despite the smog involved around the economy, Powell is still very clear about one thing, which should reassure investors: the risk of a U.S. recession remains low. While Fed policymakers expect inflation to rise to 2.7% this year, they also think it will Retreat 2.2% by 2026 and 2% by 2027.
Stifel’s chief equity strategist Barry Bannister believes that stocks can climb in the near term as investors focus on the Fed can still lower interest rates twice this year. In the long run, the question that hovers in the market will be how the economy deals with the impact therapy managed by Mr. Trump and whether the Fed has drugs to address it.
Contributed to this report.
