Trump crash gets underway
Investors continue to sell the news as markets digest the impact of 'Liberation Day', says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Stocks fall further as tariff news sinks in
Wall Street has fallen deeper into the red, falling on the open after a brief overnight bounce recouped some of Wednesday’s losses. ‘Liberation Day’ turns out to have liberated many investors from profits accumulated in recent months. Some might argue that the sheer scale of the tariffs means that negotiations will be next, leading to a recovery in risk appetite, but comments from administration members seem to suggest that no talks are forthcoming yet. Markets, it seems, are on their own.
Recession now on the horizon?
The key feature of the last two years and more has been the resilience of the US economy. Trump’s tariffs, along with the government job cuts and the potential for massive spending cuts, seem doomed to kill the goose that laid the golden egg. Of course Trump and his team hope that their tax cuts and deregulation agenda can create a bounceback that will shock and awe the world, but the pain that has to come first is likely to be brutal for equity markets worldwide.
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