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Last week, people saw the 7% spike in the S&P 500 and called it a relief rally. Markets breathed. Volatility cooled off for a moment. But what actually happened wasn’t just a response to Trump’s sudden 90-day tariff pause. It was a pressure release after days
Let’s talk markets. Specifically, let’s talk about what just went down (literally) in the Nasdaq this week. If you’ve been paying attention—or maybe even if you haven’t—it’s gotten pretty ugly pretty fast. I even tweeted something about it: Markets take the stairs up
The drop happened fast! If you blinked sometime in February, you might’ve missed that we were at new all-time highs. Now? We're in full correction territory. Just yesterday, the S&P 500 fell more 2%, and now close to 10% in less than a month. Not
Did you know that 56% of Wisconsin’s agricultural exports could be impacted by tariffs from Canada, Mexico, and China? Wisconsin now represents the 11th largest exporter of agricultural products in the U.S., up from 13th in 2023 (WI DATCP). In 2024, Wisconsin’s agricultural exports reached $3.97
So, here’s something no one seems to be making a big deal about: tariffs are rising fast, and they’re dragging the US economy down. You won’t hear much about it in the headlines, but the effects could start to pile up. Higher prices, weaker growth, and more
The market’s winning streak just hit a roadblock. Trump’s latest tariff threats, floating a 25% tax on auto, semiconductor, and pharmaceutical imports are shaking stocks today.
With growing inflation concerns, market's are guessing whether this could push back Fed rate cuts in 2025.
Here’s what’s happening and what it means for markets:
How Will Tariffs Affect Markets?
Trump’s proposed tariffs would hit three key industries:
- Autos: An already tough sector dealing with supply chain issues.
- Semiconductors: A critical piece of tech manufacturing with deep reliance on Asian suppliers.
- Pharmaceuticals: Higher costs could trickle down to consumers.
Investors remember the 2018-2019 U.S. China trade war, which sent costs higher and shook markets. If these tariffs move forward, they could hit corporate earnings, drive inflation back up, and force the Fed to keep rates higher for longer.
Futures Drop as Oil Surges
Investors didn’t take the news lightly. Stocks slipped across the board, while crude oil was one of the few assets in the green:
Here's how markets are moving this morning:
- S&P 500: -0.14%
- Dow Jones: -0.22%
- Nasdaq 100: -0.08%
- Russell 2000: -0.73% (biggest drop)
- Crude Oil: +1.27%
Other market moves:
- Bond yields climbed: 10-year Treasury yield inched higher, a sign of inflation concerns
- The dollar strengthened: Risk-off sentiment is pushing investors to have more liquidity
- Bitcoin rose: Up over 1%, possibly as traders hedge against traditional markets
What This Means for Markets
The Fed’s meeting minutes come out soon, and traders are looking for any hint of rate cuts. But if tariffs push inflation higher, the Fed might have to keep rates steady for longer than expected.
At the same time, oil is also up 1.27% this morning, which could mean traders are worried about supply issues or geopolitical risks. On top that, Ukraine-Russia talks and Germany’s upcoming election are adding more uncertainty to the mix.