The big day which investors have been awaiting or dreading has finally arrived. At 4:00 pm EDT this afternoon, just after North American markets close, President Trump is expected to make a number of announcements related to new and reciprocal tariffs, a moment that he has been calling “Liberation Day” for weeks. Previous tariff announcements have sparked a number of big moves and reversals in the markets, sometimes several in the same day.
Ahead of this announcement equites have resumed their retreat. US index futures are down 0.6% to 1.1%, with the NASDAQ down the most, erasing yesterday’s US gains of up to 0.8%. Europe is under pressure as well today, with the Dax down 1.7% and the FTSE down 0.9%.
With investor sentiment turning increasingly cautious, Gold and Silver are climbing again, with gains of 0.3% and 0.7% respectively. Commodities are mixed with Copper up 0.4% and Crude Oil down 0.5%. Treasury yields and the US Dollar are quiet for now but could be more active later and into tomorrow after the announcements.
Overshadowed in all the tariff talk today, US ADP private sector payrolls in the first full month of the new Trump Administration were significantly better than expected (155K vs street 105K). Friday brings Nonfarm Payrolls, where the impact of spending cuts on government employment may be revealed, along with Canada job data.