Investors uncertain about Trump's trade deals with China, Goldman Sachs advises diversification

From Yahoo Finance: 2025-04-27 12:00:00

Investors await Trump’s trade deal with China, leaving stock market uncertain. Data on U.S. economy is overshadowed by tariff worries. Goldman Sachs advises diversification due to trade uncertainty. Markets await clarity on tariffs and negotiations with China.

S&P 500 down 2.6% since Trump’s tariffs, European stocks up. Global stocks outside U.S. rose 1.4%, European equities climbed 2.5%. Investors eyes on E.U. defense spending and infrastructure investments amidst tariffs. J.P. Morgan neutral on stocks and bonds amid market chaos.

Deladerrière predicts lengthy tariff negotiations, gradual certainty expected. Signs of positive progress in trade deals crucial for equity markets. Uncertainty hampers business decisions, U.S. economy may experience slowing growth. Focus on high-quality companies with strong fundamentals in volatile tariff environment.

Upcoming data on U.S. employment, inflation, and GDP growth expected. Economic data may soften but won’t reflect tariff impact in long run. Tariff uncertainty leads to business caution, slowing growth predictions for U.S. S&P 500 remains down in April despite weekly gains.

Investors view S&P 500’s recent drawdown as buying opportunity. Market volatility expected due to tariffs, high-yield corporate bonds stable. Recession risk rises, anemic growth of less than 1% expected in U.S. Shorter term high-yield bonds favored. Expectation of S&P 500 upside capped at 5,800 due to tariff uncertainty.

Read more: How stock-market investors are navigating the wait for Trump trade deals