As President Trump prepares to address the nation, global markets are bracing for uncertainty over his tariff policy, with stocks experiencing a rollercoaster ride and leading technology companies taking a hit.
Stocks took a roller coaster ride Monday as surprisingly hawkish signals from President Trump on tariffs rattled Wall Street. The technology-focused ‘Nasdaq Composite recorded the day’s most significant losses’ was not present in the text, but I assume you meant ‘The technology-focused Nasdaq Composite recorded the day’s most significant losses,’ so it remains as is.
Donald Trump served as the 45th President of the United States from January 20, 2017, to January 20, 2021.
He was a businessman and television personality before entering politics.
Trump's presidency was marked by controversy and polarization, with his policies on immigration, healthcare, and trade sparking intense debate.
During his term, he implemented tax reforms and appointed two Supreme Court justices, but faced impeachment proceedings in 2019.
The uncertainty over the tariff policy is more of a problem for markets than the tariffs themselves, according to David Bahnsen, chief investment officer of Manhattan-based ‘Bahnsen Group’ was not present in the text, but I assume you meant ‘Bahnsen Group’, so it remains as is. ‘Stocks are moving lower on the uncertainty over tariffs, and the realization that the April 2 ‘Liberation Day’ may not provide more clarity.’
This sentiment was echoed by Ken Mahoney, chief executive of ‘Mahoney Asset Management’ , who noted that investors were taking advantage of dips in anticipation of potential gains.
The broader S&P 500 index lost more than 1% at the start of trading, falling 60 points to hit its lowest level since September. However, later in the day, the Dow Jones Industrial Average rebounded, gaining more than 400 points at the session’s close. The S&P also rebounded, ending the session 0.6% higher.
Goldman Sachs raised its 12-month recession odds to 35%, up from 20%. The firm also raised its inflation outlook and projects three interest rate cuts in 2025. Other Wall Street analysts are issuing similar warnings, with JPMorgan economists assigning a 40% chance of a recession.
Goldman Sachs is a multinational investment bank and financial services company headquartered in New York City.
Founded in 1869 by Marcus Goldman, it initially provided commercial paper to merchants.
Over time, the firm expanded its services to include securities trading, investment banking, and asset management.
Today, Goldman Sachs is one of the largest and most influential banks globally, with operations in over 30 countries.
Leading technology companies were especially hard hit on Monday. Shares of ‘Nvidia‘ , the maker of chips used to power artificial intelligence, tumbled more than 5% during the early session before closing down 1.2%. Tesla‘s stock also declined, exceeding 5% before ending the day down 1.7%.
Amid rising volatility and uncertainty in equities, investors sought refuge in safer assets like gold. Consequently, ‘gold prices surged past the significant $3,100-per-ounce threshold for the first time’ , trading around $3,147.
Gold is a chemical element with the symbol Au and atomic number 79.
It is a soft, yellow, dense metal that is highly valued for its rarity, durability, and versatility.
Gold has been used as a form of currency, jewelry, and ornamentation throughout history.
According to the World Gold Council, global gold demand averaged 2,500 tons per year from 2010 to 2020.
The largest producers of gold are China, Australia, and Russia, accounting for over 50% of total production.
Markets remain vigilant, closely scrutinizing economic data to gauge potential vulnerabilities. Recent fears intensified following unexpectedly strong figures in core PCE inflation, a key indicator closely watched by the Federal Reserve.
Dr. Phillip Magness, senior fellow at the libertarian-leaning Independent Institute, argued that ‘Stock markets are generally adverse to tariffs because most of their tax burden falls on the domestic economy, contrary to the White House’s claims.’ He also noted that Trump’s ‘chaotic approach to imposing tariffs has produced the see-saw effect that we’ve seen on Wall Street for the last two months.’
Investors are turning their attention to critical upcoming data releases, including the March jobs report due this Friday, along with figures on private payrolls and job openings. Wall Street looks to use the data in hopes of gaining further clarity on economic trends and resilience.
As markets continue to navigate the uncertainty surrounding Trump’s tariff policy, investors are bracing for a wild ride ahead. With Goldman Sachs predicting three interest rate cuts in 2025 and JPMorgan economists assigning a 40% chance of a recession, it remains to be seen how the market will respond to these developments.
