Investors lost $6.6 trillion in stock-market wealth due to tariff fears and recession concerns.

From Yahoo Finance: 2025-04-05 09:30:00

Investors lost $6.6 trillion in stock-market wealth over two days due to tariff fears and recession concerns. Financial experts warn against frequent account checking in turbulent markets. Trump’s tariffs could increase consumer prices by $1,900 to $3,800, leading to uncertainty in the job market and potential layoffs. J.P. Morgan raises recession chances to 60%. Focus on taking grounded financial action instead of stress-checking balances. Job seekers advised to assess performance and align with employers, while avoiding unnecessary job switches. Lifestyle creep and tariffs could impact spending habits, leading to potential budget adjustments to cushion against price increases. Delinquency rates on high-interest credit card debt are rising, with a collective credit card bill of $1.21 trillion at the end of last year. The average credit card debt at the end of 2024 was $6,580 with an interest rate above 22%. Negotiating hardship repayment plans with card companies can help during financial uncertainty, as can transferring balances to a card with a 0% APR for 1-2 years.

Car insurance costs have increased due to rising parts and labor costs. Tariffs could raise premiums further, with single-car premiums potentially reaching $2,750 from $2,300. Speed might help find slower rate increases, and strategies like increasing deductibles can save money.

Consumers should advocate for lower monthly costs with car insurers and other recurring bills. Asking for price matches against competitors can result in savings, as one consumer saved $35 monthly on internet by requesting a promotional deal match. Building rainy-day savings is crucial during uncertain times.

Tax refunds are averaging $3,170 this year, a 4% increase from last year. Filing electronically with direct deposit can expedite the process, with refunds expected to help pay off debt or boost savings. The April 15 tax-filing deadline approaches, urging action to avoid extensions. Individual investors net bought a record $4.7 billion worth of stocks on Thursday despite market turmoil from new tariffs. Older investors near retirement age may face challenges, but financial advisers see a buying opportunity. Experts advise focusing on areas of financial life where action can be taken. Stocks are currently on sale.

Read more: 7 smart money moves to make instead of checking your battered 401(k) right now