Stock market whipsows while economists cite recession risks

As the markets opened, the S&P 500 fell 3.5% and briefly entered a bearish market, when the shares fall at least 20% since its most recent maximum. The broad base index was recovered after the reports of comments from the Economic Advisor of the White House, Kevin Hassett, which President Trump is considering a 90 -day tariff freezing for all countries, except China, according to Factset, only for the actions to resume their slide with the same speed.

From 2:03 PM EDT, the S&P 500 rose 32 points, or 0.6%, to 5.106. The Dow Jones industrial average, 0.2% less in the afternoon trade, and the Nasdaq compound, which increased 0.6%, were also volatile.

“There is more noise than news today, and investors should avoid trying to tie each tick in the [S&P 500] For a headline, “the capital analyst Adam Crisafulli, head of vital knowledge, said in a report.” In the immediate term, the speed of the recent fall is unsustainable, which will leave vulnerable actions to acute rebounds. ”

Recession concerns

Investors have criticized President Trump’s tariffs, saying that they are likely to affect the economic growth of the United States and increase inflation. Goldman Sachs economists cited the flood of taxes on Monday by increasing the probabilities of a 45%recession.

“The combination of larger tariffs, greater political uncertainty, the decrease in business and consumer confidence, and administration messages that indicate a greater disposition to tolerate short -term economic weakness in search of their policies increase the downward risk,” Goldman analysts said in a report.

The shares collapsed last week after Trump on April 2 announced a global tax of 10% in all imports from the United States and “reciprocal” tariffs in almost 90 countries. The new commercial measures sent the markets to a tail tail, with the S&P 500 and Nasdaq registering its largest two days since March 2020.

Starting markets abroad also suffered pronounced losses on Monday, continuing their skate last week. Hang Seng of Hong Kong fell 13.2%, its most steep fall from the 1997 Asian financial crisis, while Taiex de Taiwan fell 9.7%, its largest registered loss. Tokyo’s Nikkei 225 Index fell 7.8%, the Shanghai compound index sank 7.3%, South Korea Kospi decreased 5.6%and Austral Sx/ASX 200 decreased 4.2%.

In Europe, the Germany Dax index decreased 4.8% in noon trade. The CAC 40 of Paris also threw 5.1%, and the FTSE 100 of Great Britain lost 4.9%.

“The short -term future of equity prices depends largely on the whims of Donald Trump,” said Thomas Mathews, head of Asia Pacific in Economics capital markets, in a note to investors. “If you flash in front of market movements and/or decide that you have received enough concessions, you could raise some rates and the feeling could turn very quickly.”

In:
• Dow Jones
• S&P 500
• Nasdaq
• Duty
• Stock market