The communication services and technology sectors have been battered during the current bout of tariff-induced volatility. That's due to their dependence on exports and exposure to international markets.
With the stock market being whipsawed around and still well off its highs, many investors may be left wondering what to do. History suggests tariffs are generally not good for the stock market, although the ultimate impact depends on the scale of the tariffs and the state of the economy.
The S&P 500 slid 9% last week, and some other widely followed domestic equity gauges are now in bear market territory. So it's understandable many market participants believe there's nowhere to hide as trade tariffs take a toll on risk assets.
After a brutal last week on Trump tariff concerns, Wall Street attempted to bounce back on April 7. Invesco QQQ Trust QQQ added 0.24% in the key trading session and advanced 1.2% after hours.
The stock market is forward-looking and not directly tied to the economy. Investors aren't foolish, as they try to price in upheavals before they hit. The current market selloff is assessed to be driven by fear, especially in the tech-heavy Nasdaq ETF or QQQ. The resilience of top US companies and ongoing trade negotiations offer potential for market stabilization.
Had you invested in the S&P 500 in April 2015, you would've been able to achieve a total return of 228%. This is well above the historical, long-run annual average of roughly 10%.
It would take days to cover all the red ink on Wall Street since Thursday.
On Monday, March 3, Calamos Investments expanded its selection of Structured Protection ETFs with the launch of two new funds. Like other funds in the Calamos Structured Protection library, these new ETFs offer equity exposure paired with downside protection over a one-year outcome period.
The Invesco QQQ Trust (QQQ), an exchange-traded fund (ETF) that tracks the Nasdaq 100 index, plunged early Thursday after President Trump imposed sweeping reciprocal tariffs yesterday. .
There is a new effective tariff rate on dozens of countries: China +34%, Taiwan +32%, South Korea +25% and Japan +24%, to name but a few.
Carlos Gutierrez, fmr. Commerce Secretary, joins 'Fast Money' to talk the economic impact of the recently announced reciprocal tariffs.
Please click here for an enlarged chart comparing Invesco QQQ Trust Series 1 (QQQ), SPDR S&P 500 ETF Trust (SPY) which represents the benchmark stock market index S&P 500 (SPX), iShares Bitcoin Trust ETF (IBIT), and SPDR Gold Trust (GLD).