Saying that the stock market has a negative reaction to the mutual definitions of President Donald Trump will be with great underestimation. As of 10:30 am EST Dow Jon’s industrial average (Djindices: ^DJI) It decreased by about 1500 points, a decrease of 3.5 % for this day. the S & P 500 (Snpindex: ^Gspc) and Nasdak (Nasdaqindex: ^IXIC) It was worse, a decrease of 4 % and 5.1 %, respectively.
Small cannabis Russell 2000 The index takes the worst success in the address indexes. It decreased by approximately 6 % for today and I am writing this, and it is now 21 %, which puts it in the bear market.
Given the market reaction, it is important to back away from a step back and digest what the definitions mean to investors and what can happen after that. Here is a quick set of news and what investors should focus on.
First, here is a quick overview of the news. President Trump has announced the rates of “mutual tariffs” over more than 180 countries worldwide.
The president shared new plans tariff Prices, which were divided by the country, claiming that the prices are nearly half of what each country has shipped to the United States. However, the numbers are much higher than that many experts expected because the administration includes “currency manipulation and commercial barriers”, as well as the definitions that each country receives fees for American goods.
The plan has a 10 % basic tariff, but imports from many countries face rates are much higher. For example, China receives a 34 % tariff at the top of a 20 % tariff in place. Just naming a few others:
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The European Union gets a 20 % tariff under the Trump plan.
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Vietnam is one of the most difficult countries, with a 46 % mutual tariff.
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Japan receives 24 %, and India will get a 26 % tariff.
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The United Kingdom, Brazil, Singapore, Chile and Australia are examples of countries with a 10 % average.
All major stock market averages were sharply less on tariff news. In short, the definitions were much more severe than most expected expected, and this is an additional risk of inflation and stagnation.
But some sectors, industries and stock groups reach the most difficult than others, including:
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Companies that sell imported goods in the first place are crushed. One major example is division discount Five below (Nasdaq: Five)Which decreased by approximately 30 % on the news.
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Companies that sell and manufacture goods in international markets are also severely damaged. For example, heavy weight technology apple (Nasdaq: Aapl) It decreased by 9 %.
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Technical stocks, in general, is one of the worst performance parts in the market, as shown by Nasdaq’s performance. Many of these things are not very vulnerable to tariffs, but technology tends to reach difficult when the market is seen as “risky”.
On the other hand, some parts of the market were standing better than most of them. For example, real estate investment funds or investment funds work better than the wider market. Real estate investment funds tend to be very sensitive to interest rates, and the treasury revenue decreased for 10 years sharply on tariff news.
Another group that holds well is most international companies that do not sell goods in the United States. For example, the e -commerce company in Latin America Mercadolber (Nasdak: Millie) It is the best performance in my wallet after the tariff news.
Perhaps the biggest reason in the stock market is very troubled at the present time is that there is a lot of uncertainty surrounding what comes after that. Investors do not know the time that these definitions will take, if they are negotiated, and what inflation means in the United States. Trade Minister Howard Lootnick said in an interview that the definitions will cause “studies other countries in their trade policy towards the United States of America.”
Economists are also divided when it comes to what this customs tariff can mean for interest in the federal reserve, as well as the American economy as a whole. Some believe that this will lead to the urges of the Federal Reserve to keep the rates they enjoy for the rest of 2025, while others, such as the chief investment employee in global wealth management, Mark Hevelli, believe that we will now see three or four price discounts this year.
More important than the issue of investors He should Do what they are It should not Do – this is panic. Nobody enjoys watching their investments in its low value, but it is important to maintain a wonderful head.
The sale of panic never works for investors, and if you are tense and are not sure of what to do, there is nothing wrong with not doing anything at all. When the market becomes a different variable as it is, I would like to sit on a chair and say: “Today is a great day to do something at all!”
If you are a long -term investor and have some cash on the margin, this may be a smart time to start searching for new opportunities. There are some excellent companies – many of which enjoy a little exposure to tariffs – that have decreased by 5 %, 10 %, or even more on the news.
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Nafidia: If you invest $ 1,000 when we doubled in 2009, You will have 286347 dollars!
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apple: If you invest $ 1,000 when we doubled in 2008, You will have $ 42,448!
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He continues.
*The stock consultant dates back from April 1, 2025
Frankel died He has positions in Mercadolber. Motley Fool has positions in Apple and Mercadolibre and recommends it. Motley recommends a five -year lie below. Motley deception has Disclosure.
Trump’s tariff crushes the stock market: Here is what all investors need to know It was originally published by Motley Fool
