US stocks wavered as tariff fears continued to weigh on the market. The U.S. made little progress on tariff negotiations.
Fears over tariffs are still weighing on the market, which saw a correction after a slight jump in today’s trading. Stocks were trading sideways, with volatility significantly lower compared to last week’s ups and downs.
On April 15, the S&P 500 was up 0.04% or 2.20 points from market open, reaching 5,408.17. The DOW Jones was down 16.43 points or 0.04%, trading at 40,508, while the tech-heavy Nasdaq was down 0.06% or 10.76 points, trading at 16,822.73.
At the same time, Bitcoin was up, with volatility significantly outpacing stocks. On Tuesday, April 15, Bitcoin (BTC) reached a daily high of $86,429 before consolidating to $84,949, registering a 0.47% daily price increase.
U.S. trade war still weighs on the markets
While the 90-day tariff pause gave much-needed relief to the markets, there are still ongoing concerns over how long this will last. Negotiations with key trading partners are proceeding slowly, which means that historic tariff rates may return.
For one, Bloomberg reports that the EU expects the 25% tariffs on all exports to remain in place, as negotiations with the U.S. have stalled. The EU proposed a “zero-for-zero” agreement for all industrial exports, but the U.S. rejected the offer.
The Trump administration believes that most foreign jurisdictions, including the EU, use non-tariff barriers to discourage exports. However, this significantly complicates negotiations for all parties.
Theoretically, industry subsidies, consumer protection standards, food safety laws, and even VAT taxes are on the negotiating table. For this reason, it is not clear whether the U.S. can secure these deals by the 90-day deadline.
Talks with China are also at an impasse, with some relief coming from Trump’s decision to exempt smartphones from the 145% tariffs on Chinese goods. These smartphones, which Chinese firms make for companies including Apple, would be subject to a different rate.
(BTC)
Read the full article here