Tariff Chaos Hits the Market – But Here’s Why the Stocks Bounce Back
February was a bumpy month for the overall stock market and our stocks.
Distractions like Trump 2.0’s latest tariff threats, the German elections, DeepSeek’s AI claims, weak consumer confidence and elevated inflation caused some wild market swings. As a result, all of the major indices ended the month of February lower, with the S&P 500 down 1.4%, the Dow down 1.6% and the NASDAQ down nearly 4%.
March has gotten off on equally volatile footing. Yesterday, markets began to sell off as deadlines approached for President Trump’s threatened tariffs against Canada and Mexico. As a result, the S&P fell 1.7% on Monday to post its worst day of the year. Meanwhile, the Dow lost 1.5% and the tech-heavy NASDAQ dropped 2.6%.
The stock market threw another hissy fit over tariffs today, with all of the major indices opening sharply lower this morning. At one point, they were all down by more than 1% before moderating those losses in afternoon trading. As investors digested the tariff news, they began to worry about how they will impact the U.S. economy now that they are in place.
So, in today’s Market 360, let’s review the latest tariff news. I’ll explain why we shouldn’t worry and what we need to remember during market selloffs. Simply put, good stocks will bounce. I’ll share an example of one such stock… and why quantum computing should serve as a catalyst for it in the future.
The Continued Tariff Drama
President Trump placed 25% tariffs on Canada and Mexico and doubled the existing tariff on China to 20% at midnight on Tuesday. Canada responded this morning with a package of tariffs on $107 billion worth of goods. China responded by announcing additional tariffs of up to 15% on imports of U.S. farm products such as poultry, chicken and beef. Mexico is expected to respond soon as well.
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