Wall Street experiencing stress due to Trump's tariffs, causing delays in IPOs and mergers

From Yahoo Finance: 2025-04-08 12:08:00

Wall Street is showing signs of stress due to uncertainties surrounding President Trump’s tariffs. IPOs, mergers, and leverage loan deals have been put on hold, while credit spreads widen amid recession fears. Big banks are pausing buyout financings and IPO plans due to market instability.

Investment-grade and high-yield bond markets have seen no new offerings for three days, adding to concerns of a potential recession. Companies fear higher borrowing rates could lead to defaults. Banks are delaying loans and struggling to refinance junk debt private credit loans.

Major clients are postponing IPO plans on Wall Street, with companies like StubHub, Klarna, Chime, and eToro Group Ltd. delaying public listings. M&A deals are also on hold, reflecting the freeze in activity due to market instability and economic uncertainties.

Big bank CEOs convened Sunday night to discuss the chaos of the week, including Bank of America, Citigroup, Barclays, and HSBC. The turmoil raises the stakes as Wall Street institutions prepare to report Q1 earnings, with analysts expecting profits to be down for some banks.

Earnings may take a backseat to market volatility, with tariffs and economic conditions driving sentiment in stocks. Executives may struggle to answer investor questions amid uncertainty. Even before Trump’s tariff announcement, Wall Street had shown signs of a slowdown.

Morgan Stanley analysts have lowered expectations for bank earnings, citing slower growth and increased uncertainty. This may delay capital markets rebound and slow loan growth. The market remains volatile and investors are seeking stability amidst ongoing uncertainty.



Read more at Yahoo Finance: Signs of Wall Street stress pile up amid Trump tariff turmoil