Stocks experienced significant declines following President Trump’s announcement of extensive tariffs, which economists warn could lead to higher prices and slower economic growth. After the announcement, the S&P 500 fell 10.5% over two days, marking its worst performance since March 2020. The uncertainty surrounding tariff details has been weighing on the market since Trump’s return to office in January. Instead of clarity, Trump’s ‘reciprocal’ tariffs have increased confusion. Analysts suggest these rates may be part of a negotiation process, with staggered deadlines allowing room for discussions. Experts recommend a cautious investment approach due to ongoing uncertainty, though potential improvements like deregulation and tax cuts could eventually boost investor sentiment. Stocks are expected to stabilize once negotiations reduce tariff rates. As for buying dips, opinions vary: some analysts suggest focusing on long-term goals and viewing pullbacks as opportunities, while others caution against immediate purchases due to technical indicators suggesting further declines.
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