This was the worst week for world stocks since the March 2020 pandemic lockdown collapse. This time it was caused by the simple move of the US Administration, which decided to implement trade tariffs to imports to the US, on all countries around the globe. Markets stayed in shock, just for the moment, and then, the inevitable happened - markets had only one move, and it was toward the downside. The question after Friday's sell-off is has the worst passed or is it yet to come?
At the start of the week markets tried to be optimistic, as there was not so bad data posted for the US economy. However, news regarding tariffs spoiled the game, and the S&P 500 lost almost 6% in value during Friday's trading session. Charts look pretty painful at this moment. The index ended the week at the level of 5.074, where it last stood in April 2024. All sectors lost on Friday. Tesla was down by more than 10% within a day, Apple and Nvidia were down by around 7,3%, Amazon dropped by 4,15%, even Alibaba had a strong wipe in value of almost 10%.
Considering the scale of implemented tariffs, markets will use another week to estimate the full effect of implemented tariffs, and counter-tariffs of other countries, including China. In this sense, some further moves toward the downside might be possible. This is a period of time when uncertainty is at its highest level, so any new news could push the markets higher toward one or the other side. Certainty, this is not the time when market optimism could be expected.
At the start of the week markets tried to be optimistic, as there was not so bad data posted for the US economy. However, news regarding tariffs spoiled the game, and the S&P 500 lost almost 6% in value during Friday's trading session. Charts look pretty painful at this moment. The index ended the week at the level of 5.074, where it last stood in April 2024. All sectors lost on Friday. Tesla was down by more than 10% within a day, Apple and Nvidia were down by around 7,3%, Amazon dropped by 4,15%, even Alibaba had a strong wipe in value of almost 10%.
Considering the scale of implemented tariffs, markets will use another week to estimate the full effect of implemented tariffs, and counter-tariffs of other countries, including China. In this sense, some further moves toward the downside might be possible. This is a period of time when uncertainty is at its highest level, so any new news could push the markets higher toward one or the other side. Certainty, this is not the time when market optimism could be expected.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.