Investors are facing a wave of concern due to the latest tariffs imposed by Trump. The stock market's measure of volatility surged to a one-year high last Friday, reflecting a growing unease among traders. There is a sense of alarm surrounding Trump's recent tariff decisions, evident in the significant increase in Wall Street's fear index, reaching its peak in about eight months due to the initiation of a global trade dispute. In response to Trump's unexpected harsh tariffs, the CBOE Volatility Index, or VIX, jumped significantly. This index, measuring implied market volatility through S&P 500 index options, surpassed 40 on Friday amidst continued market turmoil, marking its highest level since August of the previous year. Investor fears have been further exacerbated by recent developments, leading to a notable rise in the VIX Index by 116% since the beginning of the year. Additionally, various indicators of apprehension among investors have emerged, contrasting sharply with Wall Street's positive outlook at the onset of 2025. A survey conducted by the American Association of Individual Investors highlighted a stark increase in bearish sentiment towards the stock market over the next six months following Trump's tariff announcement on April 2. On the financial front, US equities witnessed significant outflows amounting to $10 billion last week, adding to the preceding week's $21.3 billion outflow. The impact of the ongoing trade war instigated by Trump has rattled investors, prompting further declines in US stocks as China retaliated with reciprocal tariffs, while Trump reiterated his unwavering stance on policymaking. This downward trend was reflected in major market indexes for the second consecutive day, with the S&P 500 registering an approximately 11% decrease year-to-date.
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