Wall Street is hoping April 2 will provide clarity on the U.S. tariff front and a reprieve from the recent market volatility. However, many remain skeptical that any real clarity is coming anytime soon.
Stocks have been in turmoil this year, as investors struggle to price in the full breadth and depth of President Donald Trump’s policies that are shifting the lines of global trade. The S&P 500 was last more than 8% off its all-time high, after falling into correction territory earlier this year. The Nasdaq Composite is more than 13% off its recent peak.
A clear-enough blueprint from Trump when he takes to the Rose Garden on Wednesday afternoon to announce his plan for reciprocal tariffs could give investors some much-needed certainty. But few expect that will be the end of it.
“Personally, I don’t believe that if you just get a framework announced, no matter what it is, that’s enough for a relief rally,” said Gabriela Santos, chief market strategist for the Americas at J.P. Morgan Asset Management.
“I think you need a detailed framework, and you need there to be a certain amount of tariffs on a certain amount of countries for a certain amount of time for it to be able to be digested by the economy — and ultimately by the markets, which I think have only started to price this in,” Santos said.
There is hope of an April rebound for the stock market. The S&P 500 has done well in April when it’s started the month below its 200-day moving average, according to Oppenheimer technical strategist Ari Wald. Typically, it averages a 2.5% advance for the month, and it’s positive 73% of the time going back to 1950.
Source: https://www.cnbc.com/2025/04/01/investors-hope-april-2-could-bring-some-tariff-clarity-and-relief-that-may-not-happen.html