Tariff Fears Fuel Dollar Surge, Stopping Stock Market Rally: A Wrap Up Of The Markets
As Trump’s trade policies accelerated, the stock market dropped down from registering record highs while simultaneously strengthening the dollar. The Treasury market was affected by concerns regarding the tariff hikes and the possible inflationary impacts. US attempts to limit Russian energy sales to other countries sent oil prices soaring as traders ramped up for fresh US sanctions.
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Equity bulls observed a pause following a rally that brought the S&P to a new high for the fifth time in over a week. Although more than 400 stocks in the index fell, Nvidia Corp. helped recover big tech, pulling the broader market up from its lows during the session. Following Bitcoin's surge to over $118,000, cryptocurrency-exposed stocks soared. Next week, analysts expect a boost in trading revenue for the six largest banks in the US who are scheduled to release their earnings.
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US Stocks Plummet Following Trump’s Powell Firing Threat
S&P 500 falls from record. Source: Bloomberg
Trump's proposed trade war targets Canada with a 35% tariff increase. Additionally, Trump suggested increasing tariffs on Canada and other trading countries to 15%-20%. Based on a 2017 report claiming almost all US trading partners were subjected to a 10% tariff expansion, Trump’s current projection is absurd.
The dollar rose higher as stocks slipped off their peaks due to Trump’s intensifying trade battles. Rising concerns about tariffs inflation jitters weighed on the Treasury market. Renewed US attempts to cut down exports of Russian energy to the US excited traders which caused oil prices to surge.
Longer-term debt saw most of the decline in bonds. A measure of Treasury volatility also experienced a three year low on Thursday which adds toward the picture of the market recovering from the turmoil caused by fiscal spending and tariff concern towards more stable conditions.
After the S&P 500 climbed to their fifth mark in nine trading days, the equity bulls decided to pause. Though over 400 stocks in the index retreated, Nvidia helped recover much of the renewed optimism in big tech stocks. Stocks that are related to cryptocurrencies also surged as Bitcoin reached a new all time high of $118,000. The expecting results for the six biggest banks next week are also bullish as increased trading revenue is estimated.
US Stocks Slump As Trump’s Threat To Fire Powell Adds Pressure
S&P 500 falls from record.Source: Bloomberg
Trump threatened a 35% tariff on so
