US Treasury Secretary Scott Bessent has reignited market tensions by warning that tariff rates will return to 'reciprocal' levels unless trading partners reach agreements during the 90-day truce period.
Bessent said there are 18 'important' trading partners that the United States is most focused on making trade deals with. He declined to specify how quickly tariff rates could revert to 'reciprocal' levels.
Additionally, Trump stated that 150 countries won't undergo actual negotiations—they'll simply be notified of the tariff rates required for conducting business in the United States.
Many American small businesses face serious risks as costs have skyrocketed, and growth plans are uncertain due to fluctuating tariff rates. Companies pass on tariff costs to consumers by raising prices to avoid shrinking margins, an approach repeatedly criticized by the Trump administration.
Financial markets are prone to extreme sentiment swings, where excessive optimism alternates with severely mispriced risk.
For the past two weeks, equity markets, including the S&P 500, have displayed extreme complacency despite persistent underlying risks. Even assuming the most minimal implementation of US tariff policies, the measures would still pose significant threats to economic growth while dramatically exacerbating stagflationary pressures.
The pendulum of market sentiment will likely swing back toward negativity soon - especially given the strongly overbought technical conditions currently visible in the broad-market S&P 500 index.
The overall recommendation is to sell SPX.
Profits should be taken at the level of 5800. A Stop loss could be set at the level of 6000.
The volume of the opened position should be set in such a way that the value of a possible loss, fixed with the help of a protective Stop loss order, is no more than 1% of your deposit funds.
This content is for informational purposes only and is not intended to be investing advice.
