President Donald Trump’s upcoming “Liberation Day” caused significant fluctuations in stock markets worldwide on Monday. Wall Street experienced a roller-coaster day with the S&P 500 rising 0.6% after being down 1.7% earlier in the day. Despite the rebound, the first quarter of the year saw a 4.6% loss, the worst in two-and-a-half years. The Dow Jones Industrial Average also climbed 1%, but the Nasdaq composite fell 0.1% due to declines in influential Big Tech stocks like Tesla and Nvidia.
Global markets faced sell-offs initially due to uncertainty surrounding Trump’s tariffs and their potential impact on inflation and economic growth. As the U.S. prepares to implement “reciprocal” tariffs on April 2, concerns about trade tensions continue. Goldman Sachs economists predict a 15% reciprocal tariff announcement, leading to adjustments in inflation and growth forecasts for the U.S. economy.
Despite the market’s volatility, safer investments like gold and Treasury bonds saw price increases as investors sought stability. The looming tariffs have raised fears of a recession, with Goldman Sachs now indicating a 35% chance in the next year. The outcome of the April 2 tariffs remains uncertain, with potential scenarios ranging from a market rally to further declines based on the severity of the measures.
Amid the market fluctuations, companies like Mr. Cooper saw gains, while tech giants like Tesla and Nvidia faced losses. Warren Buffett’s Berkshire Hathaway also rose, reflecting strategic moves in response to market conditions. The overall market saw an increase, with the S&P 500 rising to 5,611.85 points, the Dow Jones to 42,001.76, and the Nasdaq falling to 17,299.29. The impact of Trump’s policies and trade decisions continues to influence market trends and investor sentiment.
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