U.S. Stock Market Volatility Continues Amid Tariff Turmoil as Recession Risks Linger
Despite a temporary tariff pause, economic uncertainty persists with significant risks of recession as companies and consumers brace for ongoing volatility.
U.S. stocks surged Wednesday as Trump announced a 90-day suspension of tariffs for most countries, while simultaneously escalating the tariffs imposed on China.
Victor Davis Hanson Says Market Wants ‘Less China’ And Believes Trump Won’t ‘Back Down’
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But economists and analysts warned that despite Wednesday's rally, the market will likely experience continued volatility because of lingering uncertainty about Trump's endgame and whether the U.S.-China trade war will escalate.
JPMorgan maintains 60% recession call despite Trump 90-day tariff pause
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Far from a “sell America” trade, the bond market just signaled a vote of confidence in Trump’s leadership and the strength of U.S. markets.
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Whatever the plan had been, Asman told viewers, Trump’s sudden reversal was a boon for Republicans seeking to avoid the crisis he had created.
The Reaction on Fox News Really Said It All About About Trump’s Sudden Tariff Reversal Today
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Trump has long focused on the 10-year Treasury bond yield.
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The market scenario of a down equity market coupled with a Treasury sell-off defied the expectation that investors spooked by market volatility and in search of trustworthy and stable assets will turn to U.S. bonds.
Chaos in Bond Markets Sends Shockwaves Strong Enough To Get Even Tariff-Happy Trump’s Attention
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Uncertainty makes businesses uncomfortable because they don’t know what conditions they will be operating in.
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These not-so-subtle moves lower are particularly surprising given how strong the stock market closed out President Donald Trump's first term in office.
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It's generally wise to avoid selling in a panic.
US Stock Market Turmoil: Should You Ride Out Tariff Fallout or Buy the Dip?
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The tariffs will kill American small businesses, harm American consumers, tangle global supply chains, damage foreign exporters, and shrink the global economy.
The Only Way to Stop the Financial Crisis
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The stock market is no longer tied to anything real, and everybody just bypassed that and went, ‘Wow, things are really good, things are really good.’
What the stock market sell-off really says about the US economy
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Summary
U.S. stock market volatility continues as President Trump's tariff policies fuel economic uncertainty. Although a 90-day pause on reciprocal tariffs was announced, excluding China’s soaring 125% tariffs, JPMorgan Chase maintains a 60% recession likelihood. This pause follows intense market turmoil, yet analysts warn that volatility will persist as uncertainty surrounding trade issues remains. Consumer behavior is cautious, with over 30% decline in consumer confidence since November. Concerns abound regarding a potential recession as companies like Delta and FedEx report falling revenues and small business optimism drops, influencing defensive spending strategies.
Perspectives
The stock market volatility is a natural and expected part of the investing cycle, with long-term investors potentially benefiting from current market corrections.
President Trump's tariff policies have contributed to market instability and uncertainty, impacting corporate and consumer confidence negatively.
Despite the recent 90-day pause on reciprocal tariffs for most countries, the ongoing tariffs on China at 125%, coupled with market fluctuations, keep the economic outlook turbulent.
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