The US stock market has been heading for one of its worst weeks for several months, after a series of Vertigine policy changes on prices from the White House.
The S&P 500 pushed above at the start of negotiation on Friday. The mute move always leaves the index of 3.4% lower for the week, in progress for its third consecutive week of losses and its worst week since September.
There has been a clear change of mood since the index reached a record less than a month ago, while investors worried about the trajectory of economic growth, aggravated by prices on imports of the largest business partners in the country. Investigations have also shown growing concern among consumers.
Friday, a new labor market report offered a certain relief. The data has shown that a pace of hiring sufficiently moderate to temper the fears concerning the resurgence of inflation, but robust enough to avoid the concerns of a slowdown in the economy.
Lara Castleton, American manager of portfolio construction and strategy at Janus Henderson Investors, said data would likely facilitate “too bitter expectations” about the economy.
“After the confidence of the economy has taken its turn,” she said, “market players sought to confirm or reverse this feeling.”
Investors who had hoped that President Trump’s tariff threats were only a negotiation tactic were disappointed on Tuesday when 25% prices entered the Mexico and Canada, and 10% additional prices on China. Concessions were made on Thursday, Hang the prices on many goods from Canada and MexicoBut he failed to stir up a rally.
“I think the markets essentially take President Trump a little more seriously on the prices,” said Jim Caron, investment director of the portfolio solutions group at the Morgan Stanley Investment Institute. He said that despite the recent sale, the main stock market indices remained close to the record heights and that the economy remained in good condition.
A large part of the sale has been motivated by large technological companies, which, due to their size, have an important effect on large clues. Since the S&P 500 culminated on February 19, the index dropped by 6.5%. A separate measure which gives all the actions an equal weight in the index only dropped by 4.1% over the same period.
What is not clear is if investors sell because they see the tide turn for technological companies or due to broader concerns.
“In the past two weeks, and maybe in the next two weeks, we have gone through a very difficult information cycle,” said Caron. “We have to go through this and assess the damage to markets.”