Wall Street stocks got whipsawed once again as a slew of headlines on Trump’s fast-evolving tariff war with top trade partners left investors unwilling to take on too much risk following a two-day rally.
That’s even as results from big banks showed an equity trading boon and signs of still healthy consumers and businesses across America. After climbing almost 1% earlier Tuesday, the S&P 500 swung between gains and losses. Weighing on sentiment were signs the EU and US made scant progress bridging trade differences. Meantime, China has ordered airlines not to take further deliveries of Boeing.
Bonds climbed as treasury secretary Scott Bessent downplayed the recent selloff, dismissing speculation that foreign nations were dumping their holdings. The dollar halted a five-day slide. Sentiment regarding economic prospects is the most negative in three decades, yet fund managers’ pessimism isn’t fully reflected in their asset allocation which could mean more losses for US stocks, a Bank of America survey shows.
