Investors finally took President Donald Trump’s tariffs seriously, with some ugly consequences for stocks. Stocks have held stakes since the election, even reaching a fresh all-time high as JPMorgan’s Maia Crook called it a “Trump-Lite” narrative Monday, which gave investors confidence that the current government’s pro-governmental growth policy will far outweigh any pressure. The narrative was sensation this week, with stocks suffering a tenacious attitude on Monday after Trump confirmed 25% tariffs on Canada and Mexico and additional tariffs on Chinese goods. The slide continued Tuesday after Canada, Mexico and China announced retaliatory tariffs on U.S. goods. “The guardrails of risk markets seem to have stood out because the fall in U.S. stock prices nearly 5% in the past two weeks have not lowered the government’s tariff targets,” a former Fed researcher wrote on Monday. “The risk of our ‘extreme policy’ situation has risen.” The Vix YTD Mountain Vix Volatility Index over the past year. As of midday trading on Tuesday, the Dow Jones industrial average fell more than 700, or 1.7%. The S&P 500 fell more than 1.7%, negative in 2025. Nasdaq Composite fell by more than 1.5%, entering correction after falling more than 10% from its recent high. The CBOE Volatility Index (called Wall Street’s Fear Scale) rose to its highest level in 2025, with 20 of which usually indicate high fear and volatility on the streets. Duration and pain, many investors who are confident that Trump will eventually raise tariffs may increase stocks in the middle of a year, urging to calm down in the turmoil. Clark Geranen, chief market strategist at Calbay Investments, asset manager in Danville, California, noted that the S&P 500 is at an “attractive entry point” because it’s “significantly” below 6,000. He expects double-digit returns in the wider market this year. But for many traders, the question now is how long the tariffs will continue and the pain in the market. “High levels, we do want to continue negotiations with Canada and Mexico,” said Shannon Saccocia, head of investment at the Neuberger Berman division. “We do not expect a long and protracted trade war with Canada and Mexico. We expect inflation to increase significantly.” Saccocia continued, “However, we admit that if there are more protracted tariffs and retaliatory tariffs, we can see an impact on our growth.” Saccocia added that her perception could become more grim if the Trump administration starts imposing tariffs as a way to generate revenue, rather than as a negotiation tool. Don’t believe Tobin Marcus, who wrote on Monday in “Trump” Wolf Research, he hopes the pain will worsen before it gets better and urges investors not to believe in quick and easy solutions. “Duration and pain are still a big problem, but we’re not a simple ‘Trump’,” said Marcus, Wolfe’s head of policy and politics. “How long will Trump be willing to keep these tariffs in place, what he wants to accomplish before changing direction, and what level of pain might get him out of this policy? Marcus continued: “We don’t think these tariffs can remain in place forever because it will be more painful than China’s tariffs, due to the degree of interconnection and the structure of tariffs in North America. “But we think Trump wouldn’t have contacted this way if he wasn’t ready for pain. Can 20% of the market gradually shrinking can pull him off this path? Maybe. 5%? We doubt this. ”
Investors betting on “Trump-Wright” burned with tariff rock market | Real Time Headlines
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