Fears of US stock investors calm down and recover with the wall Street

Some concerns of US stock investors calmed down after reports indicating that President Donald Trump’s customs duties, which are scheduled to be imposed on April 2, were less comprehensive than expected, according to the American Business Insider network.
Reports indicated that mutual customs definitions will take place more specificly, which strengthened the appetite of investors towards risk in financial markets.
The high indicators of Wall Street
The Standard & Poor’s 500 and Nasdak entertainment index recorded gains exceeding 1% in the Monday session, continuing the rise that started last week. The Dow Jones Industrial Index increased by more than 400 points, by 1.55%.
This jump came with the support of reports that US President Donald Trump may reduce the severity of mutual customs duties to be applied on April 2, which investors considered a positive step for the markets.
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“Liberation Day” is less severe than expected
According to the Bloomberg network and the Wall Street Journal, what was called “Tahrir’s Day”, which was supposed to witness comprehensive fees, will instead will witness the application of more targeted fees, with expected exceptions to a number of countries, and not to announce at the present time definitions related to certain sectors.
This trend contributed to calming the market concerns and gradually restored the investors with the launch of the week’s sessions.
Tesla and Anfidia are among the most prominent of the winners
The shares of the technology sector witnessed a remarkable recovery, and Tesla and Envedia were among the largest of the winners, after a difficult week in which the performance of technology shares in general.
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High bond returns
At the level of bond markets, the returns have increased with the increasing appetite for risk. The US Treasury’s bond returns for ten years increased by more than 4 basis points to 4.296%.
A volatile commercial policy and existing concerns
Although investors welcomed a possible dilution of customs duties, caution is still the master of the situation, in light of the fluctuations of the commercial policy that the Trump administration has followed since the beginning of the year, causing severe fluctuations in the stock market.
Analyzes indicate that Trump has changed his position on customs tariffs several times, which increased uncertainty. In February, fees were announced on Canada and Mexico before they were postponed, then partially applied in March with subsequent exemptions.
Market disturbances and a wide sales wave
This confusion was a major reason for the entry of Wall Street indicators of the correction area early this month, with investors towards safe havens such as gold and treasury bonds in light of the ambiguity surrounding commercial policy.
Fears of high inflation and slowdown in economic growth are still casting a shadow on market performance, amid anticipation of the fees policies in April.
Trump’s comments and hints of exemptions
In press statements later made on Monday, Trump indicated the possibility of granting exemptions from customs duties to a number of countries, while emphasizing the continued imposition of fees on specific sectors such as medicines and cars “in the near future”.
Limited gains after a difficult month
Despite the gains of the two, it comes after a month full of fluctuations. The Standard & Poor’s 500 index had previously been closed in the correction area, reflecting the extent of the pressure on the American markets.
What analysts say?
“The stock market usually recovers from the correction periods almost the same speed. We believe that we have crossed the most difficult part, but the height will remain accompanied by some fluctuations,” said Jim Elius, founder of the Eyeus Financial Group.
Economic data expected
Investors are awaiting important economic data on Tuesday, including the consumer confidence index for March, and new home sales data for February, in addition to the Federal Reserve Index in Richmond for the month of March.
Muhammad Al -Arian: The wave of sale is declining
Mohamed El -Erian, Economic Adviser to “Allianz”, said that part of the recent selling pressure has become from the past, pointing to the decline in borrowing rates in the financial markets, and the transition of some investments towards Europe.
Al -Arian added: “We have not yet reached the end of the European transformation, but it is certain that the technical factors were not the bad that it was for weeks.”
American interest reduction expectations
Al -Arian expected that this year will witness only one reduction in interest rates, noting that inflation is still at difficult levels, which is held from the task of monetary policy.