Waves of volatility shook markets anew, with stocks getting whipsawed as traders searched for a bottom in the selloff triggered by Donald Trump’s trade war.
Equities swung between gains and losses, with the S&P 500’s 7% intraday move being the biggest since the bear market of 2020. Such intensity underscores the challenges investors are facing as they navigate a myriad of headlines around tariffs. A $9.5 trillion global wipeout drove the US equity benchmark down almost 20% from its record high. The bond market also experienced wild swings, with 10-year yields climbing 12 basis points after earlier tumbling about as much.
Traders are bracing for another bumpy week amid concerns that a full-fledged trade war will sink the economy into a recession. Wall Street billionaires Bill Ackman and Stanley Druckenmiller slammed Trump’s decision to launch expansive global tariffs, and JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon urged a quick resolution.
“For now, it looks like news out of Washington will continue to drive the market’s swings, one way or the other, said according to Chris Larkin at E*Trade from Morgan Stanley. “Some notable lows over the past few decades have been preceded by similar levels of volatility, although it’s always impossible to know when prices will eventually find their bottom.”
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