The US stock market is experiencing a downturn, with the S&P 500 falling nearly 3% in its last five trading days. The Dow Jones Industrial Average has slipped about 2%, while the Nasdaq Composite has fallen nearly 4%. Investors are on high alert as President Trump’s latest tariff announcements approach.
Trump’s announcement of reciprocal tariffs is expected to come on April 2, with investors closely watching for details on how steep the levies will be. The economics team at Goldman Sachs believes markets may not be prepared for what’s coming, citing a recent survey showing that market participants expect a 9-percentage-point reciprocal tariff rate.
Tariffs have already had an impact on the market, with companies such as Airbus and Boeing feeling the pinch. The latest University of Michigan Consumer Sentiment survey showed expectations for inflation over the next year jumping to 5%, the highest since November 2022.
The March jobs report is set for release on Friday morning, with economists expecting a relatively modest increase in employment. However, concerns remain about the labor market’s cooling trend, which could be a sign of a sharper slowdown in the economy.
In addition to the tariff-related uncertainty, investors are also monitoring earnings guidance from companies. A recent survey found that 68 out of 107 S&P 500 companies issued negative guidance for the first quarter, a higher-than-usual rate.
Source: https://finance.yahoo.com/news/trumps-liberation-day-and-a-labor-report-what-to-know-this-week-113053983.html