After a turbulent week of trade tensions calmed by a temporary tariff pause from President Trump, global investors are acknowledging that market volatility is likely to continue. Following Trump's decision to lower tariffs on several countries and increase pressure on China, there was a significant relief rally in the stock market, with the S&P 500 surging nearly 10%. Analysts predict that investors will continue to reduce exposure to U.S. markets and seek safer investment options. In response to heightened trade tensions between the U.S. and China, UBS Global Wealth Management advises preparing for a volatile market period. While the tariff pause temporarily eased recession concerns, banks still anticipate an economic slowdown due to uncertainty surrounding trade tariffs. Market experts suggest that the era of stable U.S. stock performance has ended, ushering in a new phase of increased volatility and uncertainty. Market volatility indicators are elevated, and safe-haven assets like the Swiss franc have seen significant gains. This uncertain market environment has prompted investors to shift towards safer investment strategies to mitigate risks. The recent sell-off in U.S. Treasuries and weakness in the dollar signal a loss of confidence in the U.S. economy among analysts and investors worldwide.
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