Is the Fed’s Surprise Half-Point Cut a Boon or Risk for Markets?

Will The U.S Markets Survive Post-Trump-Zelenskyy Talks & Tariff Threats?

[Image: tweetyspics, on Pixabay]

Amidst Trump-Zelenskyy talk and recent Trump’s tariff threats, major stock exchanges are suffering downturns. With U.S. President, Donald Trump also confirming 25% levy imposition on Canadian & Mexican goods, the Dow Jones Average Index has dropped nearly 650 points since Monday. The declining factors are broad-based, however, 23 out of 30 stocks in the blue-chip index and 7 out of 11 sectors in the S&P 500 are falling slowly.

Falling Stocks:

ConocoPhillips – 6.6% slip decline
DollarTree – 5.6% slip decline

In spite of Wall Street welcoming many of Trump’s economic policies, such as, cutting taxes and regulations on manufacturing industries, his tariff imposition could threaten trade wars against the major U.S. trading partners such as EU countries and China. Thus, leading to slower growth and higher consumption prices.

[Image: geralt, on Pixabay]

Many U.S. officials are rallying behind Trump’s plans, believing they would benefit the U.S in a long run despite impending short-term market pain. They argued that his plans are part of the bigger picture to ramp up duties on foreign goods (particularly from China), citing constant downturns in big indices such as NASDAQ (2.6% slid last year) and S&P 500 (1.8% slid last year).

Trump’s tariff threats raised benchmark for higher inflation, given that U.S manufacturers supply cost has jumped in February. European stocks are taking in opportunity for themselves, having the biggest London-listed share, BAE Systems (BAESY) rising 15% tremendously. Now the U.S Treasury yield fell to 4.178% from 4.228% as investors flocked away in favor of greener grass for government bonds.

Prominent U.S. stocks such as Apple (AAPL) and Microsoft (MSFT) could see 8% – 15% decline in stock prices due to Apple’s heavy reliance on Chinese manufacturing, and automobile makers such as Ford (F), General Motors (GM) and Tesla (TSLA) could see their shares declining to 8% – 12% in prices. Europe-based mega defense contractors such as Lockheed Martin (LMT) and Raytheon Technologies (RTX) foresee their prices rising from 5% to 18%, profiting from government bond investments.

[Image: geralt, on Pixabay]

Rising stocks:

Bitcoin (BTC): 8% to 12% rise
Lockheed Martin (LMT): 10% to 15% rise
Raytheon (RTX): 8% to 12% rise

Moving forward, your trading strategies would change from time to time. However, as a caution, you need a right planning. Here are our suggestions for you:

Focus on sectors like utilities, healthcare, and consumer staples that are less sensitive to trade tensions.
Consider international stocks, particularly in European and emerging markets, to hedge against U.S.-specific risks.
Increase trading on non-related U.S. instruments and place a hedging position to reduce portfolio volatility.
Look for undervalued companies with strong balance sheets and domestic-focused operations that can weather the storm.

The long-term outlook will depend on how these tensions are resolved. You should remain cautious, focus on defensive sectors, and be prepared for continued volatility in the U.S. markets and abroad. As always, staying informed and becoming adaptable are keys to navigating these challenging market conditions.

Trade smart, be prepared for any market conditions with us in Bold Prime. Our charts are frequently updated and our platform is full of tools and resources for traders such as webinars, blogs, economic calendar and trading education. If you’re new to trading and would want to explore thoroughly, consider using CopyTrade – where you can mimic and follow the strategies, plans and movements of the expert traders and gain profits instantly.

Trade smart, trade Bold Prime.

Our website is active and operational, with trading continuing undisrupted amidst a significant influx of traffic.

Will The U.S Markets Survive Post-Trump-Zelenskyy Talks & Tariff Threats?

Why Bold Prime

Account Overview

Contact Us

CFD Foreign Exchange

CFD Stocks

Introducing Broker

Trading School

MT4 & MT5

Privacy Policy

Data Protection

Client Agreement

AML / KYC Policy

Terms and Conditions