Wall Street Starts Q2 Under Growing Tariff Pressure
Wall Street kicked off the new quarter in turmoil as President Donald Trump’s tariffs rattled investor confidence. The S&P 500 dropped nearly 6% in Q1—its worst start since 2020.
Uncertainty around the full scope of the tariffs, set to begin on “Liberation Day,” has pushed Wall Street into correction territory.
Market Volatility Spikes Ahead of “Liberation Day”
The Dow slipped 50 points Monday, while the S&P 500 lost 0.8% and the Nasdaq tumbled 1.8%. The Nasdaq is down 12% YTD.
Analysts blame escalating tariffs for the sharp drop in Wall Street performance and investor confidence.
Analysts Cut Year-End Forecasts Amid Growing Risk
Goldman Sachs cut its S&P 500 year-end target to 5,900 from 6,200. Barclays did the same last week. Recession risk is now at 35%.
Wall Street analysts are worried that tariffs may inflate prices, hinder growth, and raise unemployment.
Tariff Uncertainty Shakes Global Markets Too
The Nikkei 225 fell 4%, Taiwan’s benchmark lost over 4%, and Germany’s DAX dropped 1.4%. Europe’s STOXX 600 slid 1.4%.
The volatility on Wall Street is being echoed across the globe, creating ripple effects in equities and currencies.
Safe-Haven Assets Surge While Wall Street Slides
Gold spiked above $3,150/oz, and the 10-year Treasury yield fell to 4.21% as investors fled risk assets.
This shift indicates growing fear on Wall Street, as traders seek shelter amid economic uncertainty.
Investors Brace for Trump’s Tariff Announcements
Trump’s tariffs, lacking clear structure, are unsettling markets. Automakers and manufacturers fear price hikes and trade retaliation.
Wall Street** strategists say investor sentiment is increasingly driven by fear and confusion.
Wall Street’s Future Hinges on Tariff Clarity
According to Morgan Stanley, investors are uneasy with vague messaging around which countries and products will be targeted.
Portfolio managers believe Wall Street may remain volatile for weeks, even after the tariffs take effect.
Wall Street on Edge as Policy Clouds Markets
Wall Street enters Q2 clouded by economic uncertainty and tariff risk. Until clarity emerges, volatility is likely to persist.
Investors should prepare for more fluctuations as Trump’s trade agenda unfolds.