US Equities and Dollar Decline Weeks After Liberation Day Announcement
Global markets have reacted to recent tariff policy changes, causing volatility across various assets:
- Stocks experienced fluctuations: falling, rising, then falling again.
- Gold initially dropped but has reached a new record high.
- The bond market faced significant sell-offs, raising concerns about potential retaliatory actions from foreign holders.
- Trump administration paused tariffs over 10% for most countries but increased levies on China multiple times, with some goods facing tariffs as high as 245%.
- Exemptions were issued for certain consumer electronics, though they remain subject to a 20% levy when imported from China.
- The US equity market saw declines, with tech stocks like Nvidia leading the selloff after news of government restrictions on chip sales to China, resulting in a projected $5.5 billion charge.
- Fed Chair Powell indicated no plans for interest rate cuts, highlighting tariffs as a risk to inflation.
Overall, investors should be cautious and prepared for continued market instability.