The stock market’s fate all depends on tariffs

MT HANNACH
5 Min Read
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With the S&P 500 (^ GSPC)) on the edge of a 10% correctionStocks rebounded Wednesday after a Inflation reading better than expected.

As with Most of the recent market actionThe rally turned out to stop as a new one that Canada Would be reprisal prices in the United States sent the main indices in negative territory before a possible rebound throughout the afternoon.

The nature of the actions of the whip of actions recently adapts to what many investors have said on the recent withdrawal: until there is a clarity on the pricing policy, the action of the chaotic market will probably not end.

Find out more: The latest news and updates on Trump’s prices

Guggenheim Partners Investment Management CIO Anne Walsh said to Yahoo Finance Wednesday, that the narrative “on, then we, then on and then extinguished” surrounding the prices stimulates volatility on the market. And as long as that persists, there is probably no higher direct path for actions.

“It doesn’t look like a fluid trajectory [for stocks] Due to all the noise, “said Walsh.

Michael Kantrowitz, chief strategist for chief investments in Piper Sandler, recently offered a similar feeling, writing in a note to customers: “[We’re] It is unlikely to see a significant recovery in actions until we see the start of the uncertainty of budgetary policy, “noting that a recent increase in the uncertainty of budgetary policy, as measured by an index followed on Bloomberg and seen below, coincided with the recent market slide.

As a global JPMorgan Stratege Asset Management Jack Manley told Yahoo Finance recentlyThe market problem with prices is not the prices themselves. If a price of 25% of 25% on Mexico and Canada was connected to the action, investors could update affected companies, how much their profits would probably fall and what would be the fair value for these shares and the market as a whole.

The real problem is that there is no clarity on the prices. Manley stressed that there was a “snowball” effect. If the United States strikes Canada with new tasks, the counterpart could respond, as it did on Wednesday. If Canada retaliates, would the United States follow with even more tasks? Does the cycle stop there?

These questions said Manley, make pricing on “extremely difficult” stock market.

Prices were one of the reasons why Goldman Sachs has demoted its perspectives for the S&P 500 This year. The company wrote in a note to customers on Tuesday evening that it now sees the reference index ending 2025 to 6,200, less than its objective of 6,500.


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