The trade policy chaos has deepened, causing elevated volatility and uncertainty for the financial markets, as the tariff tussle has now entered the courts. Experts forecast a bumpy road till the time any concrete clarity emerges.
What Happened: After the U.S. Court of International Trade invalidated a significant portion of these tariffs imposed by Donald Trump via the International Emergency Economic Powers Act (IEEPA) on Wednesday, a federal appeals court on Thursday paused the lower court’s block on tariffs.
The stay will remain in effect, allowing the Trump administration to pursue its appeal of the trade court’s decision.
Adam Turnquist, the chief technical strategist for LPL Financial, said that “the added wrinkle” to trade policy introduces more uncertainty about where the effective U.S. tariff rate will ultimately land and likely “delays the timeline for clarity.”
He added that “the market hates uncertainty,” and cited that the trade uncertainty index peaked as the market bottomed last month.
“Importantly, high levels of trade policy uncertainty tend to correlate with high implied volatility, suggesting investors should expect a bumpier path for stocks until there is more clarity on trade,” he said.
Turnquist believes that “Investors should expect elevated turbulence until there is greater clarity on trade.”
Meanwhile, Ed Yardeni, of Yardeni Research, highlighted that the U.S. operates as a federal republic, distinct from a pure democracy where majority …
Full story available on Benzinga.com
The trade policy chaos has deepened, causing elevated volatility and uncertainty for the financial markets, as the tariff tussle has now entered the courts. Experts forecast a bumpy road till the time any concrete clarity emerges.
What Happened: After the U.S. Court of International Trade invalidated a significant portion of these tariffs imposed by Donald Trump via the International Emergency Economic Powers Act (IEEPA) on Wednesday, a federal appeals court on Thursday paused the lower court’s block on tariffs.
The stay will remain in effect, allowing the Trump administration to pursue its appeal of the trade court’s decision.
Adam Turnquist, the chief technical strategist for LPL Financial, said that “the added wrinkle” to trade policy introduces more uncertainty about where the effective U.S. tariff rate will ultimately land and likely “delays the timeline for clarity.”
He added that “the market hates uncertainty,” and cited that the trade uncertainty index peaked as the market bottomed last month.
“Importantly, high levels of trade policy uncertainty tend to correlate with high implied volatility, suggesting investors should expect a bumpier path for stocks until there is more clarity on trade,” he said.
Turnquist believes that “Investors should expect elevated turbulence until there is greater clarity on trade.”
Meanwhile, Ed Yardeni, of Yardeni Research, highlighted that the U.S. operates as a federal republic, distinct from a pure democracy where majority …
Full story available on Benzinga.com
The trade policy chaos has deepened, causing elevated volatility and uncertainty for the financial markets, as the tariff tussle has now entered the courts. Experts forecast a bumpy road till the time any concrete clarity emerges.
What Happened: After the U.S. Court of International Trade invalidated a significant portion of these tariffs imposed by Donald Trump via the International Emergency Economic Powers Act (IEEPA) on Wednesday, a federal appeals court on Thursday paused the lower court’s block on tariffs.
The stay will remain in effect, allowing the Trump administration to pursue its appeal of the trade court’s decision.
Adam Turnquist, the chief technical strategist for LPL Financial, said that “the added wrinkle” to trade policy introduces more uncertainty about where the effective U.S. tariff rate will ultimately land and likely “delays the timeline for clarity.”
He added that “the market hates uncertainty,” and cited that the trade uncertainty index peaked as the market bottomed last month.
“Importantly, high levels of trade policy uncertainty tend to correlate with high implied volatility, suggesting investors should expect a bumpier path for stocks until there is more clarity on trade,” he said.
Turnquist believes that “Investors should expect elevated turbulence until there is greater clarity on trade.”
Meanwhile, Ed Yardeni, of Yardeni Research, highlighted that the U.S. operates as a federal republic, distinct from a pure democracy where majority …Full story available on Benzinga.com Read MoreAdam Turnquist, Analyst Color, Craig Shapiro, deficit, Donald Trump, Ed Yardeni, Equities, Market Summary, Marko Kolanovic, News, policy, QQQ, SPY, Tariff, tariffs, Tax Cuts, Trade, Trade Policy, Economics, Markets, SPY, US78462F1030, QQQ, US73935A1043, News, Analyst Color, Equities, Market Summary, Economics, Markets, Benzinga Markets
