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8:22Now PlayingMan Group CEO Robyn Grew talks about approaching market volatility, alternative investing and Trump administration's posture toward US investment at the Milken Institute Global Conference in Los Angeles.
- A historic stock-market run came to a halt as President Donald Trump’s latest tariff remarks provided little relief to investors bracing for the impacts of his trade war on the economy and corporate earnings.
Not even data showing a pick-up in growth at US service providers was able to erase equity losses, with the S&P 500 halting its longest rally in about 20 years. While Trump suggested some trade deals could come as soon as this week, there was no indication of an imminent accord with China. In late hours, Ford Motor Co. suspended its full-year financial guidance and said auto tariffs will take a toll on profit. Meantime, Palantir Technologies Inc. raised its revenue forecast.
Recent economic data seems to have assuaged market concerns of a recession, but the outcome of Trump’s tariff war has yet to be felt. For several market observers, tariffs will eventually slow the US economy as supply chains are upended and consumer confidence tumbles, with the increases in levies possibly delivering at least a temporary inflation shock.
Attention will soon shift to Wednesday’s Federal Reserve decision after bond traders dialed back rate-cut bets that had steadily mounted as Trump’s trade war unleashed havoc in financial markets. As long as the economy holds firm, Jerome Powell and his colleagues can more easily justify the standing pat.
“Uncertainty rules amid a trade war and the ever-changing landscape of tariffs, but with the hard data on consumer spending and employment still hanging in there, the Fed will remain firmly planted on the sidelines,” said Greg McBride at Bankrate.
The S&P 500 fell 0.6%. The Nasdaq 100 slid 0.7%. The Dow Jones Industrial Average lost 0.2%. The yield on 10-year Treasuries rose three basis points to 4.34%. The Bloomberg Dollar Spot Index slipped 0.2%.
Oil sank as OPEC+ agreed to a bumper output increase. Taiwan’s dollar surged on bets authorities might allow it to appreciate to help reach a trade d
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