Investors Look for Liberation From Uncertainty and Volatility
While President Trump's announcement Wednesday will bring a measure of relief, the tariff issue won't go away that easily.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
It was another day of chaotic action for the market Tuesday as investors anticipated possible reactions to President Trump's tariff announcement, which will take place late Wednesday afternoon. Stocks bounced back from a poor start as there was some dip buying of large-cap technology names by optimists hoping that the worst has already been priced in. However, the miserable price action is keeping many folks on the sidelines until there is greater clarity.
The Magnificent Seven had a good day with a gain of 1.6%, but the indexes were mixed, and there were significant pockets of weakness. There were over 600 stocks hitting new 12-month lows and very little speculative strength outside Newsmax NMAX.
Acton in the biotechnology sector was particularly notable, with the iShares Nasdaq Biotechnology ETF IBB declining 2.7% and hitting its lowest levels since April 2024. The group was already under pressure with the broader market, but high-level firings and resignations at the FDA are causing great concern about how the agency will approve new drugs, biologics, and devices as it loses some of its most experienced scientists.
The weakness in biotechnology is likely compounded by aggressive shorting and selling of biotech ETFs. Buyers have little interest in stepping up right now, with the overall market struggling with the uncertainty of the tariff issue and concerns about the economy.
We now have had two days in a row with solid bounces after very ugly action early in the day. Market players are hoping that fears of tariffs are overblown and that the worst has already been discounted. The likelihood, though, is that there will be significant volatility no matter what happens. Tariffs are going to be an ongoing issue for a while.
The good news is that some uncertainty will be lifted Wednesday with the tariff announcement, and that will be a relief. Still, after all the technical damage that has been done lately, it will be difficult to have a solid rally without better support.
Have a good evening. I’ll see you Wednesday.
None
