Stocks closed mixed in most volatile session since the pandemic as Wall Street is ‘starting to find a bottom’

• president Donald Trump’s announcement From the “mutual tariff” in which investors fully flared up the guard last week, but news of negotiations and a wrong report on a temporary stop for 90 days may have gave traders some hope. Meanwhile, hedge funds may support stock prices because they covered their short locations.

The markets are like 2020 again, as investors continue to calculate the “mutual definitions” committed by President Donald Trump, which leads to the most volatile Wall Street session since the beginning of the Kofid -19s.

The shares initially decreased on Monday before some large technology names led the size. S&P 500 decreased in the bear market to start today, as it decreased by 20 % of the highest level in mid -February, before erasing most of those losses to close 0.23 % for the session. The Nasdaq Technology compound followed a similar pattern, ending with an increase of 0.1 %, while Dow Jones decreased about 350 points after last week with successive losses of 1500 points or more for the first time in its history.

Jay Philseld, CEO of Infrastructure Capital Advisors, said the markets were not ready for protectionist measures in which Trump was revealed in the White House park on Wednesday. A 10 % blanket tariff entered into force on Saturday, but taxes are scheduled to be imposed on most imports if these goods come from countries that have a trade deficit with the United States

“What we call” the death scheme “is completely unexpected,” said Philseld, who runs ETFS and a series of hedge boxes.

However, Philseld indicated that the shares did not do the straight Monday, as administration officials claimed that more than 50 countries contacted the White House to negotiate, even if 90 -day tariff reports prove that they were wrong. He said that when the S&P moved less than 5000, after slightly over one month of the 6100 sign, it raised the normal support for the index.

“We started finding a bottom,” said Philseld. “But this does not mean that the bottom is not 4800 or 4600.”

Ironically, stock prices have also got a boost because uncertainty is still high. The CBOE fluctuation index, or VIX, briefly moved over 50 times several times throughout the session. The index known as the “fear scale” is known in Wall Street, and it is derived from the prices of the S&P 500 options and is witnessing the highest sustainable height since the epidemic.

Philseld said that the increasing fluctuations signals included the hedge boxes appropriately, well -hedging by purchasing contracts, or options that give investors the right to sell the basic asset – in this case, future S&P 500 contracts – at a predetermined price.

Practicing these options is profitable when the index value is less than the “strike price” of the option. However, when the fluctuation is high, traders have incentives to relax on these situations to ensure earning money before the shares are recovered.

“It is actually a good thing about the hedge boxes,” said Philseld. “They are the ones who buy the market stability.”

For example, the small hedgebox in the phone loaded on the S&P 500 on Friday morning before filtering it on Monday, which can do it because its long exposure to the index was limited.

He said: “If you never cover your shore, you will never earn money.”

Chips stocks, but Apple and Nike Fall

The induction uncertainty has created many of the two winners and losers. The shares of popular chips increased, as the shares of Market Darlings Nvidia and Broadcom jumped by 3.5 % and 5.4 %, respectively. Amazon and Meta also helped drive the road to the American technology giants, where both shares rose more than 2 %.

But Dollar Tree exceeded all of these companies as one of the biggest winners of the day. CITI analysts said that about half of the discount chain products will be subject to identification tariffs, but the arrow rose 8 % as they suggested that the company raise prices without many consumers.

For other major names, the two were presented a little rest. Apple shares have thrown nearly five their value since Wednesday, with the shares decreased by 3.7 % for the session. The iPhone maker relies heavily on China, which was exposed to a 54 % tariff that Trump said he would witness another 50 % duty on whether Beijing does not withdraw its revenge measures.

It is a similar story to Nike, which produces most of her clothes in India and other countries in Southeast Asia, which has also been subjected to heavy tariffs. Stelantis and Ford shares and other auto industry companies continued to decrease as the industry struggled with a 25 % tariff on all foreign cars and parts.

Investors have not necessarily flowed to all kinds of safe haven assets. The cabinet that was sold with the return of the return for 10 years was sold to more than 20 basis points to 4.20 %, and the price of gold decreased.

This story was originally shown on Fortune.com

2025-04-07 21:52:00