Investors were nervously waiting for business opening in US financial markets after the reduction of Wall Street assets last week, fired by import duties announced by Donald Trump’s government.
On Saturday, the president defended the awards in his social network, truth and advised investors that “Holding stuck” because it would be “an economic revolution”. On Sunday, according to Reuters, Trump stated that unless the negotiation deficit that is alleged to exist with China was resolved, there would be no agreement. About the market situation said the president that “sometimes it is necessary to take the medicine.”
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With the beginning of the negotiations on the future of new prices at night since Sunday, it was clear what was already expected by analysts and investors: the chaos is still far from over and the medicine follows bitter.
The future of the index dropped in the early moments of the negotiations, indicating another difficult session for new bags. At the opening, Dow Jones lost 3.3%, the S&P 500 withdrew 3.8%and from Nasdaq withdrew 4.8%.
Check out the future quotes at. 23:15 (Brasília Time):
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- Dow Jones: -2.11%
- S&P 500: -2.48%
- NASDAQ: -3.13%
During the two days after the announcement of customs on Wednesday (2), the S&P 500 reference index fell by 10.5% and lost about $ 5 trillion in market value. It was the biggest loss of two days since March 2020. The sharp case from Thursday (3) and Friday (4) got the S&P 500 to collect low than 17% over the historical closing record on February 19.
In addition to the effect on the markets, demonstrations were held against measures taken by Trump, not only in customs and their impact on relations with other countries, but also with changes in the government structure. Elon Musk was also the goal of the protests. More than 1,200 manifestations “Hands Off” were planned for Saturday in all 50 states, says Associated Press. The organizers included civil law groups, trade unions, LGBTQ defenders and veteran groups.
Search for durability
“The high market is dead,” said Mark Malek, investment director at Siebert Financial. “We can see some wins in the coming days, but at the moment they will not be sustainable.” The moment of the news of customs, which coincided with the beginning of the season of results from companies related to the first quarter, contributes to the dark perspective, Malek said.
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In the interview programs on Sunday morning, Trump’s foremost economic adviser tried to portray tariffs as intelligent US relocation. Treasury Secretary Scott Bessent said at NBC News’s “Meet the Press” program that there was no “no reason” to predict a recession in the country.
Some investors believe that the US stock market will at least try to perform a kind of return. “At some point this week, it is probably inevitable that we have a high day,” says Sosnick, a manager of investment strategist at interactive brokers. The issue is still sustainability in all recovery.
“There may be a day this week when the screens are green, but all lasting recovery may not occur in three or four weeks,” says Alex Morris, investment director at F/M Investments. “At this point, people will start to say that we have already taken a lot of air from the balloon.”
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Customs and Europe
European Union countrieswill present a united front in the coming days against the US import duties Created by Donald Trump, probably approval of a first set of counter -counter -up to $ 28 billion in imports of US products, from floss to diamonds.
Such a measure will mean that the EU will join China and Canada to create retaliation surveillance against the United States, on an ascent than any fear that it will be an open global trade war, which makes products more expensive for billions of people and leading economies from all over the world to the recession.
The American billionaire Elon Musk said on Saturday he hopes to see In the future a total trade between the US and EuropeTalking days after US President Donald Trump announced duties about business partners. “At the end of the day, I hope that both Europe and the United States should move ideally, in my opinion, to a zero customs situation, which effectively creates a free trade zone between Europe and North America,” Musk said.
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However, this does not appear to be the vision for European leaders. European Central Bank Leader (ECB), Isabel Schnabel stated that Trump Liberation DayBecause the announcement of the new US president’s new customs package can mark the end of free world trade.
“We lived on a liberation day, which was not liberating, but which actually seems to mark the end of the global free trade,” Schnabel said during the 36th workshop on economics and financing of the European house Ambroeti, Italy. The statements were released by the official account account of X.
THE France may have a decrease of 0.5 percentage points In the growth of the gross domestic product as a result of US President Donald Trump’s customs policy, Prime Minister François Bayrou said on Saturday (5). “The Trump policy can cost us more than 0.5 points in our GDP,” Bayrou said, according to excerpts published in an interview with Le Parisien.
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THE British car manufacturer Jaguar Land Rover There are shutdown exports to the United States, the company said in a statement on Saturday. According to the company, one of the UK’s largest car manufacturers, the break should occur later this month. The company said it is working to mitigate the effects of 25% tax on imported vehicles that will be adopted by Donald Trump’s government.
(with reuters)