The Federal Reserve provided relief to the market on Wednesday as central banks continued to forecast two paths for interest rate cuts in 2025. However, the stock rallies on the day were not held on Thursday and Friday, reflecting a sense that the main issues plaguing the stock market last month have little changed.
22V investigative President Dennis Debschele told Yahoo Finance that the market is focusing on President Trump’s tariffs and possible mutual obligations through the Fed Conference.
And understanding how any of these policy plans will affect the profits of businesses this year is “what the market is absolutely struggling,” according to Debusschere, amid the recent 10% decline. This struggle was also head-on and centered as both Nike (NKE) and FedEx (FDX) declined after both Nike (NKE) and FedEx (FDX) warned that looming economic headwinds such as this year’s tariffs could weigh profits this year.
EDT at 1:14.23pm. Market open.
^gspc ^dji ^ixic
There are many layers of market tariff concerns. There is a question of which companies will be affected by tariffs. There is a question of which companies will be affected by the rebels. And there are even more questions about how potential price increases in some industries can raise prices for other products. Overall, there is a fear that the answers to all of these questions can put pressure on consumer spending and overall economic activity.
Read more: What Trump’s tariffs mean for the economy and your wallet
All this led to jerky market behavior as investors struggle with price at moving targets. Currently, most of President Trump’s tariff plans are delayed until April 2nd. In a social media post Wednesday, Trump described April 2 as “America’s Liberation Day.”
But exactly what happens remains an open question for the market.
“We’re sitting down and waiting for some direction and clarity until we reach April 2nd,” Piper Sandler’s chief investment strategist Michael Kantrowitz told Yahoo Finance.
Kantrowitz argued that policy uncertainty was a major factor in recent market divestitures. That unknown is because it clouds the Federal Reserve and potentially corporate revenue outlook. Usually, Kantrowitz says the market wants to be more clear about the initial catalyst that caused the sale before moving higher.
“The main catalysts that usually stop it from becoming a problem (when) essentially allow the market to find its footing,” Kantrowitz said.
The story continues
