Stock prices fell sharply following President Trump's announcement of extensive tariffs that economists fear could lead to higher prices and hinder economic growth.
In response to the unveiling of the new trade policies, the S&P 500 saw a significant drop of 10.5% over Thursday and Friday, marking its most significant two-day decline since March 2020 and the third-largest since the beginning of the 21st century.
The uncertainty regarding the magnitude and extent of tariffs has been a persistent issue for the market since Trump's return to office in January. The recent tariff announcement, labeled "Liberation Day" by Trump, did not provide the desired clarity for both businesses and investors, instead adding to the confusion on Wall Street.
Analysts are skeptical about the current market dip, but many suggest that investors should maintain a long-term perspective and focus on investing in companies with strong fundamentals.
The ongoing tariff uncertainty is expected to persist as countries engage in negotiations with the Trump administration or retaliate, as seen with China imposing its own retaliatory tariffs.
Market experts advise taking a cautious approach amidst the prevailing uncertainty and suggest that clarity on tariff negotiations and potential reduction in rates could help stabilize the stock market sentiment in the future.
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