Markets are reeling after President Donald Trump unveiled sweeping tariffs on Wednesday, far exceeding investor expectations and triggering fears of an inflation spike.
Ringing alarm bells in a post-announcement note was Ed Yardeni, president of Yardeni Research and historically one of Wall Street’s most bullish voices, who now expects the U.S. economy to head to a stagflation regime.
“Trump’s Reign of Tariffs exceeds most expectations. The day after Liberation Day may be more like D-Day on Wall Street. That’s too bad,” he said.
Markets Swoon, Crude Prices Tumble
The initial market response was brutal.
Futures tied to the S&P 500 dropped 3.5% in premarket trading Thursday, with similar losses hitting the Nasdaq 100 and Dow Jones. The U.S. Dollar Index, tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:UUP), tumbled 2%, putting it on pace for its worst single-day performance since November 2022.
Commodities suffered heavy losses. Crude oil futures plunged 6%, the steepest decline since July 2022. Gold …