Extreme volatility sends us stocks on a roller coaster ride because the Wall Street is stirred by tariffs

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Cnn
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The US shares fell mostly after an extremely volatile day on Monday – fell, plunged and then hopped in all directions when traders searched for a sign that the tariffs of President Donald Trump could be negotiated or stopped.

The markets all over the world had plunged in the day of the day due to concerns about increasing the global economy and the stymie economic growth. The US shares opened the day in the bear market area, but an hour later rumored that the Trump administration could possibly have pending tariffs -perhaps for several months.

This rumor turned out to be exactly that – an official of the White House called a suggestion that Trump would pause the “fake news” tariffs. And despite the signs that some trading partners, including the EU, could be willing to negotiate with Trump, the President has overthrew these hopes of hope when he said that he could beat another 50% tariff against China.

And just like that, the Dow, which had risen almost 900 points, was back down.

After a roller coaster day, the Dow closed 349 points or 0.91%lower. The wider S&P 500 fell by 0.23%. The Nasdaq composite was 0.1% higher after fluctuations between profits and losses.

The fear measurement level of Wall Street, the CBOE Volatility Index or Vix, closed on Monday at the highest level since Covid pandemic when investors were annoyed by the next step in the market. The VIX exceeded an intraday level of 50 points on Monday, a rare level associated with extreme volatility.

The wild fluctuations in markets underline how much investors want Trump to hold his trade war. The US stocks relegated rumors about a break for tariffs. However, this back bumper proved to be fleeting when dealers found that nothing civil servant had been announced.

“It was a good example of what would happen if we had actually mixed rational thinking with the ignorant tariff policy,” said Art Hogan, chief market strategist at B. Riley Wealth Management, CNN on Monday in a telephone interview. “The stock market markets have spoken according to the fact that we need to mix rational thinking with this trade policy. And so far there are none.”

Hogan added that oversold markets that are desperately good news are exposed to wild swings that can quickly turn back.

The S&P 500 hit his deep of the day at 9:43 a.m. ET and then came across the rumor that Trump could pause the tariffs, reaching the highest level of the day at 10:17 a.m. (ET). In just more than 30 minutes, the S&P 500 rose by 8.5%, a massive swing in the markets. The benchmark index then made its profits when the market came back.

“It was a monster that moved from the depth,” Joe Saluzzi, partner and co -founder of Themis Trading, told CNN.

One of the positive swings on Monday came when Ursula von der Leyen, a top official of the European Union, said that the block was “ready to negotiate with the United States”, and found that he had offered to scrap tariffs for US industrial goods.

But Trump told the reporters in the Oval Office on Monday afternoon that he had no break to enforce the tariffs he announced.

“Well, we don’t look at this. We have many, many countries that negotiate business with us,” said Trump. “And they will be fair offers. And certain cases will pay considerable tariffs. They will be fair offers.”

The volatility in the markets went beyond only shares. The return of the 10-year financial letter, which had decreased under 4% at the end of the last week, rose to 4.155% when bonds sold as investors. Retents and bond prices act in opposite directions.

At the Open, the S&P 500 fell into the bear market area – a decline of 20% compared to the latest climax – before he retired. The volatility in US shares came after a historical path in Asia and massive losses in Europe.

Wall Street released on Thursday and Friday in US shares in the United States, in which Nasdaq confirmed that it was on a bear market. Investors can feel a purchase option. With all the youngest and quick sales, the shares are cheap. According to James Demmert, Chief Investment Officer at Main Street Research, some stocks are a historically inexpensive multiple of 15 times the future profit projections. This could help to recover the markets if investors believe that shares are oversold.

“We are approaching the floor,” said Demmert. “The fact that the shares in these deep intraday moves have dropped so clearly is a clear sign of indiscriminately and anxiety base. In this case we will soon see significant rallies.”

That could also be the news that Wall Street tried to send President Donald Trump. Market Mayhem may have opened the door to some negotiations.

If the stock market withdraws from its extensive declines, Trump can receive the message that it can firmly and keep the market storm, some market analysts said.

“We need this market to cancel – to keep the pressure on the administration,” said Ed Yardeni, President of Yardeni Research, CNN in a breathtaking comment from a prominent market analyst.

Yardeni previously found that the “liberation day” of “annihilation days” was followed on the stock exchange.

As the markets played on Monday morning, Trump said in a social media post that he was ready to beat new 50% tariffs in China after the retaliation in Beijing, which was announced last week, further escalated.

Trump said the additional tariffs would come into force the week if China would not remove its retribution tariff of 34% by Tuesday. He also said that the meetings that China had requested would be canceled, even though he said that other countries would immediately negotiate the trade.

On the Atlantic, Leyen, President of the EU Executive Arm, said that the block was ready and offered to scrap his tariffs for industrial goods. Of the Leyen said that the offer from zero tariff was “long before” Trump’s latest tariff announcement and “repeated in the automotive sector”. She emphasized that the EU has disappeared “zero for zero” with other countries, which also have a strong automotive sector.

At the same time, the EU is ready to play hardball: Although she would prefer to hit a “negotiated settlement”, the block also prepares “a potential list (from US imports) for retaliation,” said von der Leyen reporters in Brussels.

CNN’s fear and greed index sagged the lowest level this year as Wall Street broke through the fear of tariffs.

When the shares initially fluctuated on Monday morning, Trump posted on social media that “countries from all over the world speak to us”.

Trump said: “Hard but fair parameters are determined” and mentioned that he spoke to Japanese Prime Minister Shigeru Ishiba.

On Monday, Ishiba asked Trump to rethink the tariffs that he imposed Japan from his office, according to a press release.

Finance Minister Scott Bessent and the US sales representative Jamieson Greer will guide the United States’ negotiations with Japan on the trade on Monday on social media.

For his part, Trump also tried to make the case that recessions could be a good thing. For example, the US oil prices rose for the first time since April 2021 that global demand will be classified in an economic downturn. The financial return have fallen because investors put money into the apparent security of government bonds. This could reduce some consumer rates that correspond to the financial returns such as mortgages, credit cards and car loans – although the chairman of the Federal Reserve, Jerome Powell, said the central bank was in no hurry to reduce interest.

“The oil prices have dropped, the interest rates have dropped (the slowly moving Fed should lower the interest!), Food prices have dropped, there is no inflation and the long -standing abused in the United States brings billions of dollars a week from the abuse of countries in existing tariffs,” Trump said on Monday morning in a social media post.

Trump and his tariffs have taken a bull stock market and are about to transform to transform it into modern history into a bear when every president supervised.

It is not just US markets that are hit by Trump’s tariffs. Shares around the world have decreased when the rattling markets of Trump’s tariffs. The European Benchmark Stoxx 600 Index fell 4.5%on Monday. The London Benchmark FTSE 100 index fell by 4.38%. Germany’s DAX index fell 4.13%. The Italy Benchmark Stock Index fell by 5.18%.

In Asia, Japan’s Nikkei 225 Index fell by 7.83%. Hong Kong’s Hang Sang Index set up by 13.22%. The Shanghai Composite Index fell by 7.34% and the Shenzhen Composite Index fell 9.66%.

One of the reasons for the bear -like feeling is the uncertainty that the Trump administration has created in relation to its inconsistent messages about whether tariffs are open to negotiations.

On Wednesday, America will impose significantly higher “mutual” tariffs for dozens of countries that have the highest trade weights with the United States. In a note to the investors on Sunday, Goldman Sachs said that Trump goes hand in hand with these threats, the United States and the global economies would certainly immerse yourself in a recession. Jamie Dimon, CEO of JPMorgan, said on Monday in an annual letter to the shareholders that Trump’s tariffs would increase prices and slow economic growth.

In addition to the 10% universal tariffs that came into force on Saturday morning, Trump also introduced tariffs for cars, steel and aluminum. He laid 25% tariffs for certain goods from Canada and Mexico. And more tariffs could be on the way: the tariffs on car parts will come into force on May 3 at the latest. In the meantime, Trump also threatened tariffs on wood, pharmaceuticals, copper and microchips.

Whether Trump is associated with these threats or not could be the decisive factor for whether the economy is falling into a global downturn.

If you ask the Minister of Commerce Howard Lutnick, Trump doesn’t blunt.

“The tariffs come. (Trump) announced it and he was not joking,” Lutnick told CBS ‘”Face the Nation” on Sunday. “The tariffs come. Of course they are.”