1. S&P 500 faces volatility amid government shutdown and tariff hikes. 2. Trade tensions intensified after Trump announced 100% tariffs on China. 3. Worst weekly loss since May, with major indices declining significantly. 4. Strong dollar supported by safe-haven demand amid uncertainty. 5. Earnings season approaching, potentially influencing market direction.
The announcement of hefty tariffs creates uncertainty and dampens investor sentiment, typically leading to declines in equities, similar to past tariff news that negatively impacted markets in 2018.
The rise in tariffs contributes significant macroeconomic risk factors that affect corporate profits and investor outlook, indicating a likely short-term bearish impact on the S&P 500.
Immediate market reactions are expected in response to the tariff news and ongoing government shutdown, as past events have shown swift impacts within weeks.