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The markets are emptying by climbing commercial negotiations while President Trump extends the tariff policies of his first mandate.
The actions dropped on Monday, the S&P 500 (^ GSPC) recorded its worst day of 2025, after Trump reiterated that 25% of prices on the goods of Mexico and Canada would continue on March 4. Trump also promised that the United States would take an additional 10% tariff from Chinese imports.
The changing mood of the market has echoed similar movements this year following pricing titles. According to Wall Street’s veteran Kenny Polcari, “prices are not the problem. The panic investor is.”
“Each time the prices make the headlines, the market is launching an adjustment, the actions plunge, the media shout the trade war, and investors act as if it was 2008,” said Polcari on the Yahoo Finance Podcast Trader Talk (see the video above or listen below). “But let’s take a step back. Are the prices really a disaster that they are made?”
The main clues were lowered in the past month, while Trump launched several new pricing ideas, including reciprocal prices and new tasks on steel and aluminum, among other products. But although tariff concerns have been at the center and the center, investors saw the actions bounce after net slowdowns.
Find out more: What are the rates and how do they affect you?
“The instinctive reaction was ridiculous,” said Polcari about the sale in early February when Trump announced prices on Mexico and Canada. “Stocks have sang, volatility enriched and algorithms have panicked.”
“But what happens when dust decomposes?” He continued. “Managers adjust. Commercial transactions are renegotiated, and investors realize that the world does not end. Those who remain calm and position themselves accordingly will win.”
President Trump burst that prices promoted jobs, national goods and services and that the government’s increase in revenue would allow the United States to reimburse the country’s national debt – which is currently at 36.5 billions of dollars.
However, forecastists note that the cost of prices often falls to consumers, who pay higher prices for daily goods imported from the foreigner.
However, Polcari argued that the investor trend to adjust their investments in anticipation of the potential prices of prices can hurt as much or more as the prices themselves.
“If you throw actions because of prices, you do everything harm,” said Polcari.
The president and member of the management of Great Hill Capital, Thomas Hayes, agreed, affirming that despite the panic that these prices have caused in the short term, the effect will probably be neutral in the long term.
