President Donald Trump’s recent address to Congress marked a pivotal moment in the ongoing trade war, with significant implications for the stock market. Following the escalation of tariffs, the stock market witnessed a reversal of post-election gains, as reported by Business Insider’s Filip De Mott. The S&P 500 dropped 1.2%, closing at 5,778, slightly below the Election Day close of 5,783. Contrary to expectations, the US dollar also weakened amidst tariff-induced inflation.
However, there may be a silver lining as Commerce Secretary Howard Lutnick hinted at a potential compromise deal with Mexico and Canada. This news has already positively impacted US stock futures in premarket trading. Meanwhile, companies like Target and Best Buy have warned of impending price hikes due to the tariffs, with grocery prices potentially rising immediately.
In other developments, billionaire investor Bill Gross expressed concerns over the tariffs’ impact on economic growth, advising investors to consider defensive stocks. Despite the turmoil, some sectors may benefit from the current trade climate. — news from Business Insider