In mid-week trade, stock markets will try to reverse Tuesday’s slide. The Dow, Nasdaq (QQQ), and S&P 500 (IVV) fell ahead of the Federal Reserve rate decision scheduled for 2 p.m. today.
Tariff Trade Wars Updates
The White House failed to report any new developments in the trade war among its trading partners. After unveiling unsustainable tariffs as high as triple-digit percentage points against China, the U.S. does not have any firm trade deals to date.
Treasury Secretary Scott Bessent’s regularly optimistic announcements about trade deals helped stock markets. However, suggestions that deals were announced as soon as this week did not help the indices yesterday. In the last minute of trade, the indices closed lower on the day. Investors are bracing for Trump to target the pharmaceutical sector with tariffs. Eli (LLY) lost 5.64%, AbbVie (ABBV) fell by 4.55%, Gilead Sciences (GILD) fell by 4.79%, and Merck lost 4.59%.
Watch the Fed
Although stock markets expect the Federal Reserve to keep rates the same, residential stocks fell. D.R. Horton (DHI) and Lennar (LEN) pulled back. Despite long-term treasury bond yields falling, markets are concerned that homebuilder activities will stall. Tariffs, inflation, and an eventual slowdown in the job market are headwinds to this sector.
The weak stock market also hurt asset managers. Apollo Global (APO) resumed its downtrend while Brookfield Asset Management (BAM) trended higher. In its quarterly report, Brookfield said it raised $25 billion in assets and enjoyed $140 billion in asset inflow.
