Market Uncertainties and Impact on the Stock Exchange
In the last trading week, US stock markets experienced significant losses, largely attributed to political decisions. Among other things, the announcement of new US tariffs by President Donald Trump led to a massive sell-off of stocks, which was reflected in the strongest daily losses of the Dow Jones, S&P 500, and Nasdaq since the beginning of the Corona pandemic.
Impact of Trade Policy
Trump announced comprehensive tariffs on imports from all countries and threatened higher punitive tariffs for countries with trade deficits against the US. These steps have significantly impacted investor sentiment.
Uncertainties from the Fed
In addition, the question surrounding the possible dismissal of Fed Chairman Jerome Powell by Trump creates further uncertainties in the market and negatively affects economically sensitive sectors. Sectors such as cyclical consumer goods, technology, and energy have suffered particularly, as exemplified by the 5.8% loss of Tesla shares.
Investment Recommendations from Experts
Many analysts recommend divesting stocks and instead investing in safer assets. Investors are preparing to sell stocks to secure profits as soon as prices recover.
Only Positive Stock Perspectives
Despite the uncertainties, there are still some stocks with a positive outlook. One of them is the TUI stock, which analysts value with an attractive price target of €10.37, representing a potential of over 60%.
Overall, a cautious approach to the stock market is advisable, yet selected stocks still offer opportunities.