Financial markets are struggling with great fluctuation after President Donald Trump’s decision to implement a new tariff, which greatly affects stocks. According to a recent report, the date for the tariff was sent on August 1, shocking waves during the market, causing remarkable sales where investors re -evaluate their positions.
Read also; The US dollar is returns as Trump announces a new trade tariff
The amendments to the import duties, which will bear the valid on August 7, have left a field of potential negotiations with the United States, yet the market reaction indicates a shift in investor morale. The “Taco Trade” strategy, which assumed that Trump will back down from the measures of aggressive tariffs, is now subject to scrutiny as it challenges the constant position of the president the previous market assumptions.
Michael Brown, the chief research strategy in Pepston, pointed out that the market sale process reflects the awareness that the “Taco Trade” may lose its importance. Art Hogan, chief market strategy in B. Riley Wealth Management, noted that the expected tariff levels may exceed previous expectations, forcing investors to calibrate their strategies.
Despite direct market disturbances, analysts such as Hogan and Brown maintain a general optimistic look at stocks during the remaining period of the year. They cite the possibility of advancing in commercial negotiations and strong basics in the American market as reasons for their upcoming position. Hogan is still targeting the 6500 level for the S&P 500 by the end of the year, indicating a 4 % increase from the current levels.
While uncertainty remains, especially with regard to the commercial deal between the United States of China, market flexibility and the possibility of making more commercial agreements leave an optimistic room. As Brown noted, the last market reaction could be an exaggerated reaction, with the medium -time course continuing to indicate the top.
Source: Indexbox Market Intelligence
