Turmoil sweep throughout the global markets as the tariff announcements were broader and more significant than expected.
The administration confirmed that the U.S. would impose a 25% tariff on goods and services imported from Canada and Mexico effective early April, including an additional 10% tariff on Chinese imports.
Proposed tariffs by the administration led to elevated volatility and concern in the domestic and international markets.
Presidential campaigning and expectations about the Fed’s direction with rates enthralled the markets in 2024.
Financial markets and analysts are anxiously awaiting cabinet and agency appointees by the incoming administration, which shape policy and the possible direction of various sectors.
Uncertainty leading up to the presidential election brought about volatility in the equity markets while bonds were weighed by a resurgence in inflation fears.
Uncertainty among global markets rose as conflict in the Middle East elevated tensions and roiled energy markets.
There is a growing concern that the Fed may not have been as responsive as it should have in responding to slowing economic data numbers, prompting some economists and analysts to increase the possibility of an economic slowdown or recession.
Volatility returned to the equity markets in July as earnings became a focal point for technology and other growth oriented sectors.
Markets were influenced by election dynamics and economic data in June as equities and bonds responded to uncertainty surrounding the direction of future fiscal policy and when the Fed might commence its rate reduction initiative.
Mixed data sent equity and bond markets into uncertainty, as economic expansion appears to be cooling, yet inflation remains a burden for consumers nationwide.
Geopolitical tensions in the Middle East along with the ongoing invasion of Ukraine in Europe, is escalating defensive positioning in the markets as funds are being diverted to less volatile asset classes.
