The stock market has shown small signs of resumption of the deployment of the chaotic price of the Trump administration after the Federal Reserve published a dark perspective on Wednesday.
A CNN expert warned on Wednesday evening that “bad news is” while the markets took another hit. The actions dropped after the president of the federal reserve, Jerome Powell, said that the Fed was monitoring the “very uncertain” economic effects of Trump policies in a speech at the Chicago economic club on Wednesday afternoon.
“As we learn more, we will continue to update our assessment. The level of tariff increases announced so far is much greater than expected,” he said. “The same goes for economic effects, which will include higher inflation and slower growth.”
Powell’s remarks sent a 700 -point tumble or 1.73%to the DOW, while the S&P 500 slipped by 2.24%and the NASDAQ composite rich in technology fell by more than 500 points or 3.07%. The stock -up contracts increased after the sale, but only slightly. Dow’s term contracts climbed by 0.36%, the U&P 500 term contracts increased by 0.45%and term contracts on the NASDAQ jumped 0.56%.
Wedbush Securities analyst Dan Ives, told CNN Erin Burnett Outfront On Wednesday, he was particularly concerned about Nvidia’s stock, which dropped 6.87%.
“The unfortunate reality: today is a dark day,” he said. “Nvidia, the golden child of the market … was cut off at the knees. Because essentially, the government – if you look at it, you can call it “restrictions”. It is a blockade in China.
In his remarks, Powell referred to the 1986 film Ferris Bueller’s leave day: “Like this great Chicagoan Ferris Bueller noted it once,” life moves fairly quickly “. For the moment, we are well placed to wait for greater clarity before considering any adjustment to our political position. »»
Powell may have their heads in a scene from the film where a high school teacher explains why the 1930s Smoot-Hawley Tariff Act failed. A clip for this scene has become viral when President Donald Trump announced for the first time his “Liberation Day” prices.
“The reality is that Powell, he sees the figures,” said Ives. “And basically, what the market shows is that bad news happens.”
During the weekend, the Trump administration installed the stock market for another week of whirlwind with confusing statements on exemptions from the heaven-up reprisal taxes and additional semi-conductors.
Trump said in a social article on Truth on Sunday that there was “no tariff exception” after customs and the protection of American borders have literally published “reciprocal tariff exclusion for specified products”, which indicated that a wide range of technological devices and parts were exempt from the 125 percent price on China.
On the same day, the secretary of trade Howard Lutnick confused market observers even more by saying that any tax exemption was only temporary, because a “distinct semiconductor” price was already in the cards.
