(Bloomberg) — Stocks got whipsawed once again as a slew of headlines on President Donald Trump’s fast-evolving tariff war with top trade partners left investors unwilling to take on too much risk following a two-day rally.
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That’s even as results from big banks showed an equity-trading boon and signs of still-healthy consumers and businesses across America. After climbing almost 1% earlier Tuesday, the S&P 500 swung between gains and losses. Weighing on sentiment were signs the European Union and US made scant progress bridging trade differences. Meantime, Bloomberg News reported that China has ordered airlines not to take further deliveries of Boeing Co.
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Bonds climbed as Treasury Secretary Scott Bessent downplayed the recent selloff, dismissing speculation that foreign nations were dumping their holdings. The dollar halted a five-day slide.
“We would advise investors to avoid making hard and fast assumptions about how tariff developments will ultimately play out in the economy and on corporate profits,” said Anthony Saglimbene at Ameriprise. “Instead, we suggest investors prepare for a range of possible intermediate-term outcomes.”
High uncertainty surrounding US trade policy and a spike in financial-market volatility has unsettled global investors over the past few weeks. Sentiment regarding economic prospects is the most negative in three decades, yet fund managers’ pessimism isn’t fully reflected in their asset allocation which could mean more losses for US stocks, a Bank of America Corp. survey shows.
Fund managers are “max bearish on macro, not quite max bearish on the market,” strategists led by Michael Hartnett wrote in a note. “Peak fear” is not yet reflected in cash allocations, they added.
Some of the main moves in markets:
Stocks
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The S&P 500 was little changed as of 1:17 p.m. New York time
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The Nasdaq 100 rose 0.2%
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The Dow Jones Industrial Average was little changed
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The MSCI World Index rose 0.2%
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Bloomberg Magnificent 7 Total Return Index fell 0.7%
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E-Mini Russ 2000 Jun25 was little changed
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KBW Bank Index rose 2%
Currencies
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The Bloomberg Dollar Spot Index rose 0.3%
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The euro fell 0.6% to $1.1278
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The British pound rose 0.2% to $1.3221
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The Japanese yen was little changed at 143.12 per dollar
