The swings in Wall Street, particularly the S&P 500's decline of over 16% since its peak on February 19, are not unprecedented, though they feel alarming. These declines often reflect economic uncertainties, notably surrounding tariffs linked to President Trump's trade policies. Experts suggest regular declines help moderate unjustified market optimism. While some anticipate a return to stability if tariffs are eased, there is a broader caution about over-reliance on a few companies for market gains, especially as investors consider long-term strategies amidst ongoing volatility.
Any kind of uncertainty around the economy will give Wall Street pause, but the trade war is making it more difficult for companies, households and others to feel confident.
The tariffs announced on Liberation Day sent stocks reeling to their worst day since the COVID crash of 2020 because they were much harsher than investors had been expecting.
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