Stocks see wild swings in run-up to Trump’s tariff roll-out
Mixed messages on new tariffs have traders flustered as they try to position around the biggest risk confronting the market in years
A renewed wave of volatility gripped global markets ahead of US President Donald Trump’s tariff roll-out, with stocks erasing losses in the final stretch of a jittery quarter. As equities bounced, bonds moved away from session highs. Gold climbed to a record.
From New York to London and Tokyo, stocks were hit by intense swings. While the S&P 500 wiped out a 1.7 per cent drop, US shares saw their worst quarter since 2022. Defensive groups led gains on Monday. Energy producers joined a rally in oil after Trump suggested the US may work to curtail crude shipments from Russia. Megacaps remained under pressure.
It is the first time since the onset of the coronavirus pandemic in March 2020 that bonds rose and stocks fell in a three-month period. The dollar, long a go-to hiding place during market sell-offs, has not been acting as such lately. The US dollar saw its worst start to a year since 2017.
The Trump administration’s mixed messaging on what new tariffs will be unveiled on Wednesday and how they will be announced have traders flustered as they try to position around the biggest risk confronting the market in years.
Trump will announce his reciprocal tariff push on Wednesday during an event in the White House Rose Garden. His top spokesperson said the announcement would feature “country-based” tariffs, but added that the president is also “committed” to implementing sectoral duties at another time.