Thu, 10 Apr 2025

Thu, 10 Apr 2025 Investors facing tariff turmoil: 'It's fastest finger first'

Traders are trying to reckon with impact of Trump's shifting tariff policy.
Richard McDonald, a former champion runner and private trader, was kept on his toes by the swift market downturn triggered by US President Donald Trump's announcement of sweeping global tariffs last week. With billions being wiped off share prices every second, McDonald sold stocks quickly to avoid losses. The market turmoil saw trillions wiped off financial markets worldwide, with leading indexes in the US and UK experiencing steep declines. Oil prices dropped, and so did the dollar value. When Trump announced a partial pause on some tariffs, shares stabilized, but market fears continued. Tariffs of 10% were left intact for most countries, while China faced a 145% tariff rate. As a result, stocks plummeted further, with the S&P 500 dropping 3.5%, Dow sliding 2.5%, and Nasdaq falling 4.3%. Portfolio manager Jed Ellerbroek at Argent Capital Management noted that some of his firm's holdings were benefiting from the uncertainty, but Apple was struggling due to its reliance on Chinese manufacturing. Ellerboek expressed frustration with the uncertain economic environment, saying it was hindering long-term investment decisions. Lead analyst John Canavan at Oxford Economics observed that investors are becoming increasingly frustrated and confused by the tariff situation, leading some to opt for cash over stocks. While Trump's partial rollback of tariffs offered relief, the larger picture remains uncertain, with ongoing tariffs likely to push up inflation and weigh on the economy.
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