Financial markets have increased as President Donald Trump’s decision to implement new tariffs, with the dramatic increase in stocks rising with fluctuations. According to a recent report, the tariff deadline for August 1 has sent shock waves through the market and will re -evaluate their positions as investors.
Also read; US dollar rises when Trump announces new trade tariffs
The adjustment of import tasks, which take place on August 7, has provided a place for possible negotiations with the United States, but the market reaction indicates a change in investor emotions. The Tako Trade Strategy, which thought Trump would withdraw from offensive tariff measures, is now supervised because the President’s company challenges the assumptions of the previous market.
Michael Brown, a senior research strategist at Pepperstone, noted that market sales reflect the fact that “Taco trade” may lose its importance. Art Hogan, the main market strategist in B. Riley’s wealth management, said: “The forecast tariff level will probably go beyond previous expectations and force investors to re -evaluate their strategies.”
Despite the immediate market turmoil, analysts such as Hogan and Brown maintain the vision of the stocks for the remainder of the year. They cite the potential for progress in business negotiations and strong US market principles as reasons for their uptrend. Hogan still targets the level of 6500 for the S&P 500 by the end of the year, indicating that it is 4 % increase from the current level.
While uncertainties, especially in the case of the US -China trade, market resistance and the possibility of more business agreements, create optimism. As Brown stated, the recent market reaction could be a over -reaction, although the medium -term route is still moving upwards.
Source: Indexbox market information platform
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