US stocks slide loses steam even as tariff worries remain

From Yahoo Finance: 2025-04-06 19:17:00

Chief investment officers and strategists express concern over the impact of tariffs on the economy. The first stage of equity selloff driven by policy uncertainty is complete, with the second stage focusing on the economic and earnings growth impact. Market strategists warn of potential recession, highlighting the need for a positive resolution between the U.S. and China.

Uncertainty prevails as markets react to escalating trade tensions. Investors brace for potential economic damage caused by tariffs, leading to significant market value losses. Analysts predict further downward pressure on equities as the impact of tariffs on earnings growth becomes clearer.

Volatility continues as market sentiment remains fragile. The VIX signals recession fears, with concerns over a potential global economic meltdown. Analysts emphasize the need for a positive development in U.S.-China trade relations to restore market confidence and stability.

High yield spreads widen as weaker credits face increased pressure. Central banks, particularly the Fed, maintain a data-dependent approach, with potential interventions contingent on unemployment and inflation indicators. Analysts stress the importance of a coordinated policy response to mitigate the impact of escalating trade tensions on the global economy.



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