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Cnn
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While Wall Street is heading for a new district, a wave of prices from President Donald Trump is expected to come into force. This has traders on board and has helped American actions in their worst collapse of the first quarter for years.
Wall Street was shaken by volatility this year while Trump’s pricing proposals have maintained investors in a cloud of uncertainty. The S&P 500 reference index is down almost 6% for the year, its worst start since 2020.
American actions were lower on Monday. The DOW was down 50 points, or 0.1%, driving at the bottom of around 300 points. The S&P 500 was 0.8% lower and the NASDAQ composite slipped 1.8%. The S&P 500 briefly reinstated the correction territory, down 10% compared to its record in February, and has dropped at its lowest level since September.
Actions around the world were lower on Monday before Trump’s so-called “Liberation Day” on Wednesday when reciprocal prices in addition to others should come into force. Economists predict that radical prices could stimulate inflation and lead to economic growth.
The complete extent of Trump’s prices is still to be seen, and the lack of clarity has weighed on Wall Street. Goldman Sachs analysts lowered their end-of-year objective on Sunday for the S&P 500 to 5,900, against 6,200. This occurs after bank analysts earlier this month lowered their target to 6,200, against 6,500.
Barclays analysts last week lowered their end -of -year goal for the S&P 500 to 5,900, against 6,600. Wall Street revised its forecasts in the midst of increased concerns concerning the impact of Trump prices on the American economy.
The economy faces a growing risk of recession, as prices could hinder growth, increase unemployment and contribute to inflation, according to Goldman Sachs. On Sunday, the bank said that it saw 35% of recession in the next 12 months, compared to 20% before.
Before this year, American actions had been at record heights, some strategists wondering the amount of space to rally. Analysts expected Trump to inaugurate a pro-business boom, allowing the stock market to continue its historic race.
However, Trump’s commitment to an economic program that prioritizes prices has left certain investors perplexed. Trump did not pay the markets the same attention as in his first mandate, while investors had to count with other factors in addition to the prices, such as the debates on the value of the boom of artificial intelligence. The Nasdaq Composite, heavy with technology, is down 12% this and on the right track for its worst quarter since June 2022 and the worst start of the year since 2020.
Meanwhile, Gold has increased this year. The most actively exchanged golden contract in New York increased on Monday above a record of $ 3,150 per ounce Troy. Gold is considered a safe refuge in the middle of economic disorders and coverage against inflation.
As Wednesday approaches, investors are always uncertain in the extent of prices – and companies and consumers are preparing for the impact. Trump told NBC News on Saturday that he “does not care” if car manufacturers increased prices due to prices.
“The administration quotes more equitable trade relations as a objective, with reciprocity the leading principle of the implementation of prices. But beyond that, we know little about what this policy will imply,” said Morgan Stanley analysts in a note on Monday.
“It is not exactly reassuring for the investors we are talking about, who are perplexed by the dynamics of announcements, negotiations, delays and exchange levels for Mexico, Canada, China and certain key products,” said analysts.
The US government bonds gathered on Monday while investors clashed on security assets. The yield on the 10 -year treasure ticket fell to 4.21% while investors took obligations.
“The comments that led there are still a lot of mixed messages and therefore the level of uncertainty is still high, and no one really knows what to expect,” said Thomas Martin, principal portfolio director at Globalt Investments.
“We are going to have an announcement and and we are still not going to have clarity. And I think it is the main thing with which we are going to live for some time,” said Martin.
The global markets have also been shaken by Trump’s prices. In Japan, the Nikkei 225 reference fell 4% on Monday and closed in correction territory, down 10% for the first quarter. The Taiwan reference index also dropped more than 4% and closed 10% for this quarter.
In Europe, the Stoxx 600 index fell 1.4%. The Dax index of Germany also dropped by 1.4%.
Wall Street’s fear gauge, the Vix, or Vix volatility index jumped by 9%. “Extreme Fear” was the feeling of market conduct on Monday, according to the fear of fear and greed of CNN.
“Everything concerns pricing uncertainty and the quantity of prices and countermeasures will be announced,” said Mohit Kumar, chief economist and strategist for Europe in Jefferies, in a note on Monday.
This is a story in development and will be updated.