Tech shares are leading the declines with Nasdaq futures also marked down by 1.1% currently. In case you missed it: Trump weighs broader, higher tariffs. Across-the-board hike of up to 20% considered
The 2 April deadline draws closer and Trump will surely want to make a show of it, having already labelled it as Liberation Day. It’s going to be a tricky next few days and it’s also important to consider this: What is really expected by the market for reciprocal tariffs: 5 ways to look at it
As things stand, risk sentiment is likely to stay on edge until we get to the big day. But come what may, it’s important to remember that markets will react however they want to react. And it’s not about what we, as traders, think is right or believing what markets should do.
The reception by broader markets can be however rational or irrational, but at the end that is what drives price movements.
And that’s something we have to accept in order to find pockets of opportunities this week. One might be right in arguing how significant or insignificant the impact of Trump’s tariffs might be but in the next few days, the market reaction i.e. emotional response will outweigh all of that until the dust settles.