1. S&P 500 fell 1.97%, continuing a six-week downtrend. 2. Tariff announcements significantly impact investor sentiment and capital flows. 3. Investors are rotating from growth stocks to value stocks amidst market uncertainties. 4. Consumer sentiment and core PCE inflation metrics worsen; recession fears rise. 5. Institutional activity suggests caution with high outflows from equities.
The persistent downtrend coupled with high outflows from equities signals continued weakness, reminiscent of previous market downturns like 2008, when tariff impositions similarly exacerbated market conditions.
The mix of negative market momentum, structural economic shifts, and policy developments directly influences the broader S&P 500 index and investor confidence.
The immediate effects of trade policies and inflation metrics are likely to resonate within the next few weeks as markets react to upcoming economic data and policy announcements.