The stock market has been on a tumultuous ride since President Trump unveiled sweeping tariffs. The S&P 500 has flirted with bear market territory, reflecting deep investor anxiety over the economic implications of a protracted trade war.
I checked my portfolio this morning and winced — my industrial sector ETFs (XLI) have taken a particular beating, down nearly 7.3% since the tariff announcement. Consumer staples and utilities have held up better, but not by much.
Key Points: - Market Volatility: The tariffs have injected significant uncertainty, leading to sharp market swings. - Economic Concerns: There is growing fear that the tariffs could dampen economic growth.
Companies with significant exposure to international supply chains have seen the most dramatic impacts. Apple (AAPL) dropped 5.2% yesterday on concerns about its Chinese manufacturing dependencies, while Caterpillar (CAT) is down nearly 8.7% for the week.
As the market digests these developments, investors are left to navigate a landscape fraught with risks and potential rewards. Personally, I'm holding off on making any major moves until we see how trading partners respond to these tariffs — sometimes patience is the best strategy.
