As President Trump's Tariffs Take Effect, Should You Really Buy Stocks? Here's What History Says.
The past couple of weeks have been tough for investors. All three major benchmarks -- the S&P 500 (SNPINDEX: ^GSPC), the Dow Jones Industrial Average (DJINDICES: ^DJI), and the Nasdaq Composite (NASDAQINDEX: ^IXIC) -- have dropped, halting at least temporarily what looked like unstoppable momentum. All three indexes climbed in the double digits over each of the past two years amid optimism about a lower interest rate environment ahead and the promise of exciting new technologies including artificial intelligence (AI) and quantum computing.In recent weeks, though, a few elements have shaken the market -- from certain economic data that's disappointed, like a drop in consumer confidence last month, to worries about how high-flying AI companies will continue to grow as quickly as they've done in recent years.And one concern in particular has stood out: President Donald Trump's launch of tariffs on imports from China, Mexico, and Canada -- and those countries' moves to retaliate. The news has prompted investors to worry about the impact on U.S. companies' earnings and the economy, and that's weighed on stock performance. On Monday, the S&P 500 lost nearly 1.8%, posting its biggest daily drop since December. On Tuesday, it fell another 1.2%.Continue reading
The past couple of weeks have been tough for investors. All three major benchmarks -- the S&P 500 (SNPINDEX: ^GSPC), the Dow Jones Industrial Average (DJINDICES: ^DJI), and the Nasdaq Composite (NASDAQINDEX: ^IXIC) -- have dropped, halting at least temporarily what looked like unstoppable momentum. All three indexes climbed in the double digits over each of the past two years amid optimism about a lower interest rate environment ahead and the promise of exciting new technologies including artificial intelligence (AI) and quantum computing.
In recent weeks, though, a few elements have shaken the market -- from certain economic data that's disappointed, like a drop in consumer confidence last month, to worries about how high-flying AI companies will continue to grow as quickly as they've done in recent years.
And one concern in particular has stood out: President Donald Trump's launch of tariffs on imports from China, Mexico, and Canada -- and those countries' moves to retaliate. The news has prompted investors to worry about the impact on U.S. companies' earnings and the economy, and that's weighed on stock performance. On Monday, the S&P 500 lost nearly 1.8%, posting its biggest daily drop since December. On Tuesday, it fell another 1.2%.
