According to UBS, stock volatility will not disappear anytime soon. The Dow Jones Industrial Average has suffered its worst day since January 10, down more than 400 points after Walmart stock sell-off. The country’s largest retailer issued more than expected fiscal year guidance, with the stock falling more than 6%. Walmart also warned that it will not be completely exempt from U.S. tariffs on Mexican and Canadian goods. On the same day, the S&P 500 and Nasdaq Comprehensive were also lower. Earlier this week, President Donald Trump suggested that the U.S. put more tariffs on imported cars, pharmaceuticals and semiconductors. The Trump administration is also developing rapidly with federal spending cuts, thus increasing political uncertainty. UBS believes that ongoing policy moves may make stocks meaningfully move higher from the current level. “Volatility is what we consider an asset class, especially given the potential political, geopolitical and technological shifts in the coming months,” wrote Ulrike Hoffmann-Burchardi, chief investment officer at UBS Global Equity. Chief Investment Office. “More tariff plans are expected to be released, some of which take effect,” she said. “We believe that given the potential damage they may cause to U.S. growth and inflation, not all tax plans will be followed, but we say Investors should prepare for positive U.S. trade policy. Markets may need to adjust their pricing on tariff impacts with more detailed plans or new recommendations revealed in the coming weeks and months.” Hoffman Beal Hoffmann-Burchardi also warned that the U.S. government shutdown could increase stock market worries. “Congress is working to reach a deal to maintain government funding by the March 14 deadline to prevent closures, as senior approvers have not yet agreed on 12 annual funding bills,” she said. “In addition, April’s budget settlement process could trigger market volatility as Republicans, with their slim majority, hope to pass various legislation promised on the campaign. “Other than other parts of Wall Street on Friday morning, JPMorgan Chase will be headquartered in Singapore The ride-sharing app Grab Holdings is upgraded to overweight. “Grab’s guidance may prove conservative,” analyst Ranjan Sharma wrote in a note to clients on Friday. “We believe that earnings delivery over the year may be possible as investors’ expectations are under the foundation of guidance.” Promote positive revisions to earnings expectations.”
As the market continues to shift political trends, expect more volatility: UBS | Real Time Headlines
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