Market Reactions and Tariffs

The announcement of new tariffs is expected to create significant market volatility as investors speculate on its implications for the economy. Analysts suggest that the uncertainty surrounding these tariffs has already impacted market sentiment, with both the Nasdaq and S&P facing declines this year. As the day unfolds, the market is looking for signs of a potential 'clearing event', where the tariffs might lead to a rally in anticipation of earnings season. However, mixed signals from analysts indicate that the overall market conditions may still favor a defensive allocation in response to the prevailing volatility.