Markets extend plunge after Powell says Fed to wait and see on tariffs impact
From Yahoo Finance: 2025-04-04 02:50:00
The Nasdaq is now in a bear market as Wall Street continues to plunge after China imposed new tariffs on all U.S. goods in response to Trump’s levies. The S&P 500, Dow, and Nasdaq closed down more than 5% each. Powell warned of larger-than-expected tariffs and potential economic fallout, leading to tough decisions for the central bank.
Global stocks plummeted, sending investors to low-risk assets like U.S. government bonds. Gold fell from record highs, while crude oil continued to slide over fears of a global recession due to escalating trade tensions. U.S. Treasury yields dropped sharply after China’s tariff retaliation, impacting markets.
Analysts predict banks will increase reserves for loan losses due to higher recession risks. Market uncertainty may lead to reduced investment banking revenue. Financial institutions demonstrate resilience, but the impact of unprecedented tariffs remains unclear. The market reacts to a potential long-term gain at the cost of short-term pain.
Tariff uncertainty continues to unsettle markets, with concerns of stagflation and recession looming. Economic data and market sentiment reflect apprehension over the unpredictable nature of tariffs. Institutional participation and volumes have decreased significantly, impacting market health. All eyes are on job data and inflation indicators to assess the situation.
President Trump remains committed to tariffs, causing market volatility. Markets react to incoherent trade policies with negatives implications for the economy. Analysts foresee slower growth, recession risks, and elevated inflation. Technical support around 5,000 on the S&P may be tested. The market adjusts to the impact of tariffs and faces economic uncertainties.
Businesses face uncertainty as tariffs disrupt planning processes, leading to market pessimism. The market anticipates long-term consequences of tariffs despite U.S. business resilience. Analysts warn of economic repercussions and a potential recession due to the ongoing trade tensions. Market sentiment remains cautious amid uncertain economic conditions. trade relations improve and the market bounces back, or tensions escalate further leading to a prolonged downturn. Investors are cautious, waiting to see how negotiations play out. Federal Reserve Chair Powell’s comments on tariffs and inflation suggest no immediate rate cuts, affecting market expectations. Japanese banks are hit hard by trade war repercussions, with reflation prospects dimming. The situation remains uncertain as global markets react to changing economic realities. Tariffs remain unchanged, impacting Japanese bank shares. Senior Portfolio Manager warns of potential economic recession in Japan if rates stay as is. Market reacts to global recession fears, leading to a shift in sentiment from bullish to cautious. Real estate and construction sectors emerge as key trades due to no direct tariff exposure and strong conditions. Names in these sectors focus on improving shareholder returns and capital efficiency.
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