Stock Market Braces for Incoming Tariffs, Trump Says Decision Has Already Been Made
New tariffs are set to be announced today, and the stock market is in crisis mode, with stocks dropping precipitously in fear of what this step for the trade war will mean.
U.S. President Donald Trump says that the decisions for these tariffs have already been made, and later today, those decisions will be revealed. The Nasdaq Composite dropped 0.47% today, and the Dow Jones fell by 0.94% in response to rising tariff fears. The S&P 500 is down 0.65% as well, and we anticipate that all for these indices will fall further after news breaks as to what the tariffs will actually entail.
These are reciprocal tariffs, meant to punish countries that have enacted tariffs against the United States. Tariffs have already been put into place against Canada, China, and other key trade partners, with many politicians decrying the use of tariffs against countries that are not considered enemies of the United States.
Trump says that the United States has been “ripped off” by the rest of the world and has promised that Americans are going to get a “Liberation Day” thanks to his tariff efforts. Many financial analysts and economists, however, are worried about the effect a trade war will continue to have on the stock market and on the economy. Fears of recession continue to press, and the stock market is at one of its lowest points since September of last year.
Stocks Take a Hit
Which stocks are currently being hit by a trade war? Most of them are feeling the impact, but we will take a look at a few of the more notable ones. Nvidia (NVDA) continues to plummet, down another 1.19% today. This stock continues to drop week after week, losing many of the gains it made last year.
Apple (AAPL) is down as well, losing 0.30% today ahead of the tariff announcement. This stock is a little higher than its low point two weeks ago, but it is not going to be helped by the trade war.
Other stocks that are trending down today include Intel (3.54%), Amazon (0.88%), and PepsiCo (0.56%). A few key stocks are climbing today, though, including Walmart (0.40%), Alphabet (0.48%), and Microsoft (0.31%).
Is This the Right Time to Invest in Stocks?
With many stocks at some of their lowest points in months, it could look like a good time to jump in and take advantage of the dip. However, investors may want to hold back. The tariff announcement later today could trigger a further decline, giving investors a much better opportunity to buy up shares of key stocks at good prices.
Trump will likely feel pressure to boost the economy throughout the remainder of the year, and his efforts may pay off for investors who are buying in at this time. As interest rate cuts occur later in the year, the market is sure to receive a small boost, and investments now could start to reap rewards then.
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