Count Down to April 2nd: Here's the Ultimate Trading Manual for Trump's 'Liberation Day'
1min read On April 2nd, Trump is about to announce the so-called Reciprocal Tariff, which he also refers to as Liberation Day. Before this, the global stock markets have been in a state of great unease. In particular, the US stock market has been sold off successively. Global hedge funds sold US technology stocks at the fastest pace in six months last week.
Given Trump's unpredictable style, no one can predict what the final implemented policy will be like at present. It is even possible that April 2nd could be the start of a new round of tariff policies. Then, when the final Judgment Day arrives, the direction of the market becomes even more uncertain.
From the perspective of investment banks, morgan stanley believes that the policy on April 2nd is not the end but just a stepping stone for future negotiations, and market uncertainties will persist. goldman sachs has significantly raised the risk of a hard landing for the US economy, expecting the Federal Reserve to cut interest rates three times this year. It has also lowered the 3-month and 1-year price return forecasts for the S&P 500 index.
The related industries in the US stock market will bear the brunt. The automotive industry has already been in turmoil due to the auto tariffs previously announced by Trump. If the reciprocal tariffs cover more key sectors, such as semiconductor chips and pharmaceuticals, the stock prices of related enterprises will face pressure. Chip manufacturers like nvidia and pharmaceutical giants like pfizer will all be exposed to risks.
The global supply chain will also be impacted. For enterprises that rely on imported raw materials or components, costs will soar, and profit margins will be squeezed.
Global investors are on high alert. The implementation details of the policy and the subsequent countermeasures taken by various countries will profoundly affect the market trend. Perhaps April 2nd is just the beginning of a new round of storms, and the subsequent chain reactions will be the key to determining the fate of the market.
Ask Aime: What is the potential impact of Trump's Reciprocal Tariff on the US stock market and the global economy?
