The stock market experienced significant volatility on Monday, with the S&P 500 swinging from a loss of 4.7 percent to a gain of 3.4 percent in morning trading. This marked the biggest intraday swing for the index since March 2020 during the Covid-19 pandemic. Investors are concerned that steep tariffs imposed by the United States on imports, and the response from China and other countries, will hurt global growth and fuel inflation.
The brief rally on Monday was caused by a false report that President Trump was considering delaying new tariffs, showing how desperate investors are for any sign that the White House is listening to their concerns. Kevin Hassett, the director of the National Economic Council, said on Fox News, “I think the president is going to decide what the president is going to decide,” when asked about the possibility of a ninety-day pause on the tariffs announced by Mr.
stocks react to tariff concerns
Trump last week. The turmoil in the markets is expected to persist, according to an independent Wall Street economist. This one is likely to last a while given the intransigence of the Trump administration on the issue of tariffs,” he said.
The stock market clearly believes this is a disastrous policy.
The S&P 500 ended the day with a drop of 0.2 percent and stood 17.6 percent below its February peak. The index is close to entering a bear market, which is a rare marker of extreme market pessimism when stocks fall 20 percent from their peak. The CBOE Vix Volatility index, known as Wall Street’s fear gauge, rose to levels last seen during the pandemic-induced sell-off in March 2020, indicating heightened anxiety among investors.
Image Credits: Photo by Kyle Ryan on Unsplash
