Stock markets were rattled Wednesday by worries about incoming US President Donald Trump slapping tariffs on imports and the fading prospects for interest rate cuts.
US stocks futures and European shares turned lower after CNN reported that Trump is considering declaring a national economic emergency to provide legal cover to impose tariffs on all imported goods.
“Perhaps more than even during his last term of office, traders will need to pay close attention to everything coming from the new President,” said David Morrison, senior market analyst at Trade Nation.
“And, just to prove a point, the dollar has soared while risk assets have tumbled on reports that Trump is ‘mulling a national emergency declaration to allow for new tariff program’.”
Wall Street stocks opened a smidgen lower after all three main indices ended in the red Tuesday, with the Nasdaq and S&P 500 each shedding more than one percent.
Trump’s …