The US stock market is heading for one of its worst weeks in months after a series of eye-opening policy shifts on tariffs from the White House. Friday's fresh employment report provides important readings on the strength of the economy.
The S&P 500 futures pointed to a modest start trading when the market was open. The benchmark index has dropped 3.6% so far this week, the worst week since September. The course has lost three weeks in a row. This is a sharp mood shift since the index reached record highs within a month.
Since then, investors have been worried about the trajectory of economic growth, exacerbated by tariffs on imports from the country's biggest trading partners. It also shows research showing the formation of concerns among consumers.
Investors who wanted President Trump's tariff threat to be a negotiation tactic when 25% tariffs were enacted in Mexico and Canada and another 10% tariffs were enacted in China. The concessions came on Thursday, suspending tariffs on many goods from Canada and Mexico, but were unable to blow the rally.
If employment data released Friday shows a slower pace of recruitment in February, it could exacerbate economic concerns.
“We are pleased to announce that Jim Caron, Chief Investment Officer of the Portfolio Solutions Group at Morgan Stanley Investment Institute,” said: He said that despite recent sales, major stock indexes are approaching record highs and concerns about the economy are rising, but the economy remains in good condition.
Much of the sale is driven by large technology companies. Because of its size, even a small change in stock prices can have a major impact on a wide range of indexes. Since the S&P 500 peaked on February 19th, the index has fallen by 6.6%. Another measure that gives all stocks equal weight within the index fell by just 4.4% over the same period.
What's not clear is whether investors are seeing the tide of tech companies on the rise or whether they are selling for wider concerns.
“We've had a very challenging news cycle in recent weeks, and perhaps for a few weeks,” Caron said. “We need to get through that and assess how much damage the market is.”
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