Wall St Week Ahead: Markets Brace for Further Tariff Tumult

U.S. financial markets are reeling as President Donald Trump’s announcement of sweeping new import tariffs rattles investors. The tariffs, which include a 10% baseline on all imports with even higher rates on select countries, have sent the S&P 500 tumbling over 17% from its recent high, nudged the Nasdaq into bear territory, and dragged the Dow into correction territory. The move marks the most aggressive tariff policy in over a century and has heightened fears of a global recession, especially after China retaliated with a 34% tariff on U.S. goods.

As the April 9 deadline for the new tariffs approaches, market volatility is expected to persist. The fallout has spurred bearish sentiment, with the Cboe Volatility Index reaching levels not seen in four years and JPMorgan raising recession odds to 60%. Investors are eyeing upcoming earnings reports and economic indicators, including a key Consumer Price Index release, as concerns grow over inflationary pressures and the potential economic drag noted by Fed Chair Jerome Powell.