From Yahoo Finance: 2025-04-04 17:34:00

Markets face potential tariff turmoil after Trump’s import levies led to the worst week for U.S. stocks since the start of the pandemic. The S&P 500 and Nasdaq are in bear market territory, while the Dow Jones saw a significant correction. Uncertainty looms as global asset prices continue to be affected.

Trump’s tariffs, set to be the highest in over a century, have sparked retaliatory measures from China. JPMorgan analysts now raise the risk of a global recession to 60%. Investors hope for negotiations to ease tensions, but some doubt Trump will make concessions. Economic and earnings forecasts have been downgraded.

With the Cboe Volatility Index at its highest since 2020, and bearish sentiment at levels not seen since the financial crisis, investors are cautious. Financial forecasts remain grim as companies prepare to report earnings. The coming week will see quarterly reports from major banks like JPMorgan and Wells Fargo.

As companies gear up to report earnings, the market selloff and increasing pessimism set a low bar for positive news. The monthly consumer price index report on Thursday will offer insight into U.S. inflation ahead of tariff impacts. Investors are anticipating more Federal Reserve interest rate cuts in response to the tariffs.



Read more at Yahoo Finance: Shell-shocked markets brace for more tariff tumult