Citigroup Inc. is urging major clients to remain cautious when making investment decisions due to extreme volatility in the stock market. After Donald Trump announced a new batch of import tariffs last week, the S&P 500 index plunged rapidly. However, since Thursday it started to recover amid the news of temporary cancellation of most of the expected duties, Bloomberg reports.
Due to such sudden changes, Citigroup experts advise investors to refrain from making rash deals and avoid unreasonable risks. They emphasize that the impact of Donald Trump's tariff policy and its consequences on the global economy should not be underestimated. Analysts find it difficult to predict how exactly the new US President's actions will affect the condition and income of certain companies.
In addition, the US President, seeking to develop domestic production, is restructuring international supply chains. This has a negative impact on global trade and raises severe concerns among market participants. This fact also contributes to the volatility of stock indicators, according to Citigroup.