Wall Street reacted sharply to President Trump's announcement of sweeping tariffs targeting major trading partners, causing stock prices to plummet in after-hours trading. A baseline 10% tariff was imposed, with China facing the steepest increases at 34%. Economic uncertainty has driven market sentiments to a low, impacting consumer confidence and spending. Analysts, however, noted that while the situation is serious, the clarity about tariffs might limit panic. Overall, despite fears, some experts express caution over potential recession risks, indicating the markets can cope if clarity persists.
"The amount of economic uncertainty as is measured is so massive now that markets feel like they are on a razor's edge," said one top New York hedge funder.
"This is not the worst-case scenario, which would have been a 20% global tariff across the board," said Thierry Wizman, Macquarie Group's global foreign exchange and rates strategist.
"We've been experiencing uncertainty, and that's one of the reasons the market has not been doing well," said Dr. Sung Won Sohn, a distinguished economist.
"I don't expect the economy to go into a recession but..." suggests cautious optimism in light of market reactions.
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