Investors were nervously waiting for business opening in the United States financial markets after the drop in the value of the assets on Wall Street last week, fired by import tariffs announced by the government of Donald Trump.
In the two days following the announcement of tariffs on Wednesday (2), the S&P 500 reference index fell 10.5% and lost about $ 5 trillion in market value. It was the biggest loss in two days since March 2020. The sharp drop from Thursday (3) and Friday (4) caused S&P 500 to accumulate low than 17% over the historic closing record on February 19.
Futures will open at 6 pm, local time (19h Brasília) this Sunday, which will give an indication of how negotiations can be on Monday (7).
Search for sustainability
“The high market is dead,” said Mark Malek, director of investment at Siebert Financial. “We may see some gains in the coming days, but for now they will not be sustainable.”
The moment of the news about tariffs, which coincided with the beginning of the season of results from companies related to the first quarter, is contributing to the dark perspective, Malek said.
In Sunday morning interview programs, Trump’s main economic advisers sought to portray tariffs as intelligent US repositioning. Treasury Secretary Scott Bessent said on NBC News’s “Meet The Press” program that there was no “no reason” to predict a recession in the country.
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Some investors believe that the US stock market will at least try to perform a kind of return. “At some point this week, it’s probably inevitable that we have a high day,” said Sosnick, a chief investment strategist at Interactive Brokers.
The issue remains the sustainability of any recovery.
“There may be one day this week when screens are green, but any lasting recovery may not occur for three or four weeks,” said Alex Morris, director of investment at F/M Investments. “At this point, people will begin to say that we have already taken a lot of air from the balloon.”