AE Wealth Management: Market Minute — Tariff turbulence increases
Tariff turbulence increases
Markets reacted strongly on Thursday, April 3 to new tariff announcements. The S&P 500 went back into correction territory while the Dow tumbled more than 1,400 points and the Nasdaq fell 5% for the day. Thursday’s decline, coupled with losses over the past two months, puts markets back at the levels they were at in August 2024.1
While the volatility is certainly concerning, there is actually good news. The tariff announcement caused a ruckus in the short term, but it actually reduces some of the uncertainty we’ve dealt with over the last few weeks.2 Markets don’t like unknowns – and the unknown has been a major factor for investors to deal with in 2025. Now that some of the question marks have been removed, markets can deal with them and move on to other things.
The other good news is that we’ve seen events like this before – and the market has always rebounded. A diversified portfolio is built for scenarios like these, providing a balance that helps soften the blow for drops like these.
Still, we know events like these are unsettling for investors. We encourage you to stay disciplined and avoid making any decisions with long-term ramifications based on short-term noise. Lean on your financial advisor for reassurance and guidance if you’re concerned. They can review your risk tolerance and make sure your portfolio is allocated to weather future market moves.
1 Brian Evans, John Melloy and Pia Singh. CNBC. April 3, 2025. “Dow drops 1,400 points, S&P 500 loses 4% as stock market rout on Trump’s tariffs worsens: Live updates.” https://www.cnbc.com/2025/04/02/stock-market-today-live-updates-trump-tariffs.html. Accessed April 3, 2025.
2 Elisabeth Buchwald, et al. CNN. April 3, 2025. “April 2, 2025 – Liberation Day tariff announcements.” https://www.cnn.com/business/live-news/tariffs-trump-news-04-02-25/index.html. Accessed April 3, 2025.
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