
Traders brace for more volatility ahead of tariffs
Global stocks were poised to endure another rocky session on Tuesday as concerns around President Donald Trump’s looming tariff rollout continued to whipsaw markets.
Shares in Australia, Japan and South Korea opened higher while US equity-index futures dropped in early Asian trading. The S&P 500 climbed for the first time in four sessions, though US shares still notched their worst quarter compared to the rest of the world since 2009. As equities bounced, bonds moved away from session highs.
Trump will announce his reciprocal tariff push on Wednesday during an event in the White House Rose Garden. Press Secretary Karoline Leavitt said Monday the announcement would feature “country-based” tariffs.
The Trump administration’s mixed messaging on what new tariffs are expected to be unveiled and how they’ll be announced have traders flustered as they try to position around the biggest risk confronting the market in years. Ahead of the event, investors have refrained from taking large positions amid concerns how the levies will impact economic growth and inflation in the world’s largest economy.
“Tariffs will likely continue to drive the market discussion,” said Chris Larkin at E*Trade from Morgan Stanley. “Whether tariffs are more or less rigid than expected could go a long way toward shaping the market’s near-term momentum.”
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It was the first time since the onset of the pandemic in March 2020 that bonds rose and stocks fell in a three-month period. The dollar, long a go-to hiding place during market