US shares fluctuating strongly through tariffs on Wall Street

US shares fluctuating strongly through tariffs on Wall Street

The US exchanges were extremely volatile on Monday-they fell, climbed and fluctuated in all directions, while the dealers searched for signs that President Donald Trump could be negotiated or exposed.

market developments and international effects

The markets worldwide had broken down at the beginning of the day because concerns about the effects of Trumps Customs to the global economy and economic growth. The US shares opened the day in the bear market area, but recovered an hour later when rumors came up that the Trump administration could possibly suspend the tariffs for several months.

rumors and market reactions

These rumors turned out to be not true; A spokesman for the White House described the assumption that Trump would suspend the tariffs as "fake news". Despite the hopes that some trading partners, including the EU, could be willing to negotiate with Trump, the President dispersed the hopes of relaxation when he announced that he could raise another 50%in China.

This is how the Dow Jones, who rose almost 900 points, quickly dropped away. Finally, the DOW was with a decline of 840 points or 2.2%, while the wider S&P 500 was 1.7% and the Nasdaq Composite fell by 1.5%

volatile markets and investor psychology

The violent fluctuations on the markets illustrate how much the investors hope that Trump pauses his trade policy. US shares recovered from their lows and were even positive when the rumors came up with a customs break. However, this recovery turned out to be short -lived because the dealers realized that nothing officially had been announced.

"That was a good example of what could happen if we actually mix something rational thinking with ignorant customs policy," said Art Hogan, chief market strategist at B. Riley Wealth Management, in a telephone interview with CNN. "The market observers have loudly signaled that we have to integrate rational thinking into this trading policy. So far there is nothing like that."

market movements and economic forecasts

The S&P 500 reached his day deep at 9:43 a.m. (ET) and then climbed due to the rumor about the possible customs break, reached his day at 10:17 a.m. (ET). The S&P 500 rose by 8.5%within just 30 minutes, which represents a massive market movement before the index made its profits again.

"That was an enormous movement of the deep stalls," remarked Joe Saluzzi, partner and co -founder of Themis Trading, compared to Cnn.

European Union shows willingness to negotiate

A positive factor on Monday morning was that Ursula von der Leyen, a high-ranking EU officer, said that the EU was "ready to negotiate" and offered to abolish the tariffs on US industrial goods.

market behavior and political uncertainty

The S&P 500 fell into the bear market area at the beginning of the trade - a decline of 20% compared to a recent maximum - before recovering. The decline in the US shares was noticeable according to a and massive losses in Europe.