Global markets have experienced significant volatility in recent days, with US futures impacted by numerous economic and political factors. In this context, investors prepared for a crucial week expected to include a significant announcement by US President Donald Trump regarding new tariffs, as well as important economic reports that could influence their future decisions. In this article, we will discuss the impact of these factors on the markets, focusing on stock and futures movements, rising gold prices, and oil market volatility.
US Futures Decline
US futures began to decline on Monday as investors prepared for a week filled with significant economic and political events. At 3:39 AM EST (7:39 GMT), Dow Jones futures were down about 173 points, or 0.4%, while S&P 500 futures were down about 38 points, or 0.7%. Nasdaq 100 futures also fell by about 215 points, or 1.1%.
Wall Street markets experienced significant declines at the end of last week, following increased concerns about the impact of potential tariffs on the US economy. Recent economic data also indicated that US consumer spending rose at a lower-than-expected rate in February, reflecting a state of caution among Americans.
Fears are growing that President Trump’s aggressive economic moves could lead to an economic slowdown, limiting the Federal Reserve’s ability to take further easing measures such as interest rate cuts. James Knightley, chief economist at ING Bank, said high inflation and a slowdown in consumer spending will likely worsen due to President Trump’s new trade policies.
President Trump’s trade policy significantly impacts global markets, as uncertainty prevails regarding the impact of new tariffs on the US and global economy. With gold prices rising and oil markets volatile, investors remain cautious about the coming weeks.
Trump’s expected tariff announcement
Markets are eagerly awaiting US President Donald Trump’s expected announcement on April 2, which is expected to include the imposition of a new round of tariffs. Reports indicate that these tariffs could be broad in scope and impact trade relations between the United States and its major partners. This announcement could fundamentally alter the trade policies the United States has pursued in recent years.
Analysts indicate that President Trump may impose new tariffs on more than 15 countries, including European and Asian allies. Some have predicted that tariffs could reach 20% on countries with which the United States has a trade deficit. This move is part of Trump’s efforts to rebalance the trade balance, as he insists that tariffs are necessary to improve the United States’ trade position.
Previously, Trump revealed plans to impose tariffs on imported cars, another step aimed at boosting American manufacturing. While this move could raise car prices in the domestic market, Trump has expressed disdain for increased consumer costs.
The Impact of Trump’s Policy on Global Markets
In another context, Trump’s statements about imposing tariffs on Russian oil attracted significant attention. He announced his willingness to impose tariffs ranging from 25% to 50% on Russian oil if he believed Russia was obstructing his efforts to end the war in Ukraine. This statement reflects a shift in Trump’s tone toward Russia, after previously expressing support for Putin.
This coincided with European concerns about a potential rapprochement between Washington and Moscow, raising questions about the United States’ commitment to supporting European defense. Despite the growing tensions, Trump emphasized that his relationship with Putin remains “very good,” and that his anger could quickly subside if the Kremlin’s behavior changed.
Gold Prices Rise: A Safe Haven
Gold prices have risen significantly in recent days, reaching record highs in some markets. Increased demand for gold as a safe haven has driven investors to the yellow metal. Gold saw a series of record highs in March, as many investors turned to gold out of fear of the impact of tariffs and the US economic crisis.
Gold prices are expected to continue rising in the near future, as concerns about a potential recession in the US economy grow. Goldman Sachs, for example, now predicts a 35% chance of a recession in the coming months. Growing fears of a slowdown in economic activity have contributed to increased demand for gold, pushing prices to new highs.
Oil sees sharp volatility
Despite a rise in oil prices at the beginning of the week, they remain on track for a quarterly loss due to growing concerns about a global economic slowdown as a result of new trade policies. This coincides with continued declines in prices following the recent gains in oil markets.
OPEC+ is expected to begin increasing oil production in April, which could lead to further volatility in oil prices. With growing concerns about the impact of the trade war on oil demand, energy markets may face additional challenges in the future.
Market Outlook
Markets remain under intense pressure at the moment due to intertwined economic and political factors. While a potential increase in tariffs could hurt economic growth in the United States and globally, movements such as the rise in gold prices reflect general anxiety about the economic outlook.
Markets are expected to remain cautious in the coming days, especially with Trump’s anticipated announcement on April 2 approaching. High inflation and weak consumer spending will continue to influence investor decisions in the coming months.
