Bank of America strategists estimate the strike price for a “Trump put” at around 5,720 for the S&P 500
US equities showed stability after a previous selloff driven by tariffs. Key points include:
- The S&P 500 was up 0.9% and the Nasdaq Composite gained 1.1% during midday trading.
- President Trump defended his trade policies, stating that short-term market pain is expected for long-term gain.
- Trump is not concerned about current stock price slides and emphasized tariffs as essential for national protection.
- Commerce Secretary Howard Lutnick confirmed that Trump is considering offers from Mexico and Canada while maintaining tariffs until fentanyl flow is addressed.
- Analysts suggest a "Trump put" could be triggered if the S&P 500 falls to around 5,720 or experiences a single-day loss over 5%.
- Nicolas Colas from DataTrek Research highlighted volatility as a critical metric, noting a VIX above 36 may trigger a policy shift.
- The Federal Reserve's next interest rate decision is on March 19, with low expectations for an immediate rate cut.
Current market conditions are uncertain, but stocks are showing positive movement for now.