Dow is 3,000 points higher, S&P 500 points, and Trump has suspended most reciprocity tariffs since 2008, the best day
The S&P 500 has dropped 20% over the past week, and investors have made it clear that they think they can stop sales.
President Trump needs to back down on tariffs. Given that the president raised tariffs to a century, the main catalyst for one of the worst three-day sell-outs in the S&P 500 since World War II, investors believe the only real leverage to stop bleeding is changing the trend from Trump.
“We need to see some evidence of negotiations very, very quickly,” Mark Newton, head of global technology strategy at Fundstrat told Yahoo Finance on Tuesday.
It comes on Wednesday through a few words of truth socializing.
“I have authorized a pause of 90 days and during this period greatly reduced mutual tariffs, and a 10% rate also took effect immediately.”
Stocks are now tearing apart. There are many things to consider about the tariff pause, the direction here and the impact of 125% tariffs on China.
But at least for the time being, one investor’s takeaway is clear: the so-called Trump proposal – the unfavorable level in the market or the economy that investors believe will lead to the president’s intervention – seems to be alive and not bad.
“The most important thing we just learned is that the president will blink when facing the almost inevitable situation of an imminent recession (and the mid-term elimination),” Justin Wolfers, an economist and senior researcher at the Brookings Agency, wrote on X.
