Posted By RichC on March 5, 2018
After President Trump’s bombshell about placing tariffs on US imported steel and aluminum last week (although he did suggest it during his campaign for president), comments made later made it sound like cooler heads may prevail — that … and the fact that many of President Trump’s advisors remained quiet or gingerly disagree. Speaker Paul Ryan step out on a limb as well and has concern that tariffs and a potential trade war would hurt more that it would help.
I’m sure all free and open trade thinkers understand the US currently has unbalance and harmful trade, but know adding taxes is not something Republicans are comfortable endorsing. Most watchers now believe that such stiff tariffs and an overall trade war may be overblown and that negotiations are taking place to avoid something that could have negative economic consequences. This help the markets swing from a 100 point drop at the opening bell, to a nice across the board gain by 4PM.
After digesting, investors bought back US stocks and “seemed” to believe the US economy (and world economy) should still be in “grow-mode.” Today the DJIA closed up 337 points or 1.37% as other US indices closed up a full 1% and more as well – WSJ Link. Who knows what will trigger the next bounce up or down? Volatility and nervousness seems to be here to stay for a while.