The equity markets are going through a period of strong instability marked by brutal fluctuations and persistent uncertainty. Fucked by geopolitical tensions, monetary policies going according to American customs tariffs and the results of mixed companies, this situation weakens the confidence of investors.
A pessimistic climate fueled by political and economic uncertainties
Tension on the financial markets remains palpable. While repeated announcements of the White House on new pricing increases plunge businesses into the vagueness, investors struggle to anticipate a clear trajectory for the global economy.
President Donald Trump, by displaying his desire to repatriate manufacturing production and drastically reducing federal spending, extends this instability on the markets and accentuates their volatility.
This uncertainty results in sudden movements on the large stock markets. For example, the S&P 500 lost 6 % in 1 month, penalized by concern around the next declarations of the president and geopolitical tensions with Russia.
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The table of quarterly results is also not reassuring. Groups like Fedex and Nike have lowered their prospects for profitsevoking cost pressure, demand at half mast and negative effects linked to American trade policy.
Even very followed technological values like Microsoft try to reassure the markets on the solidity of their roadmap Faced with growing doubts in the artificial intelligence sector.
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The Fed delays the drop in rates
On the monetary side, the American Federal Reserve (Fed) has chosen to maintain its unchanged guiding rates. A decision greeted in the short term by Wall Street, with a rebound of 2 % for the S&P 500 the same day and 1.4 % for the Nasdaq.
The president of the Fed, Jerome Powell, recognized a rise in pessimism in the conjuncture surveys, while recalling that certain indicators, such as the low unemployment rate, remain solid. The institution remains cautious, But still considers 2 additional rate drops by the end of the yearin a context of lower growth and always unstable inflation.
However, The markets fear a form of stagflationthat is to say, a vicious circle with economic stagnation and persistent inflation. Jerome Powell wants to be reassuring, spreading the comparison with the 1970s, but without giving clear visibility on the outcome of the current cycle.
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In summary, despite some bruise fans, The equity markets remain deeply unstable. Between the results of mixed companies, political uncertainty, trade tensions and monetary hesitations, short -term visibility is reduced. Investors must deal with increased volatility and difficult reading of short -term economic signals.
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Source: tradingView
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Maxime discovered the world of finance and very young investment before launching from the age of 18 years. His passion for financial assets and new opportunities offers him a good vision of the current economy as well as emerging trends.
Maxime Montlet
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