1. 90-day tariff pause offers temporary relief; macro outlook remains fragile. 2. Average U.S. tariff rate rises to around 30%, posing economic headwinds. 3. JPMorgan lowers S&P 500 year-end target to 5,200 amid recession fears. 4. A drawn-out trade war could lower the index to 4,000; breakthroughs could raise it to 5,800. 5. Investors in IVV advised to remain cautious due to weak sentiment.
The increase in average tariff rates and recession fears negatively impact overall market sentiment. Historical instances show that high tariffs correlate with reduced economic activities, negatively affecting ETF performances.
The article directly discusses factors impacting the S&P 500, which IVV tracks, increasing relevance. Concerns over recession and tariffs are foremost market drivers that influence investor decisions in index ETFs like IVV.
Tariff and recession implications are likely to flare up swiftly, impacting short-term market movements. Historically, sudden shifts in trade policies have led to immediate market reactions.