S&P500 Under Pressure – Is Another Correction Ahead?

by Marcus Klebe
01:31, 2025/04/03

S&P500 Under Pressure – Is Another Correction Ahead?

The U.S. stock market is showing signs of weakness. Following Donald Trump's long-awaited announcement of his tariff plan yesterday, U.S. indices reacted with notable declines. This move, which he had already promised during his campaign, is now fueling growing uncertainty in the markets.

The key question is: How will global trading partners respond? If countermeasures are taken and the trade conflict escalates, it could weigh on the U.S. economy and push the market further downward.

Technical Outlook: Where Could the Market Be Headed?

From a technical perspective, the S&P500 still has room to the downside without significantly compromising the broader trend. In particular, the 5,385-point and 5,145-point zones could serve as potential support levels. If concerns surrounding tariffs intensify, these levels may come into play.

How Should Investors React?

At this stage, caution is advised. Buying opportunities should be approached carefully, as uncertainty currently dominates. A sustainable recovery may only take shape once concerns over the trade conflict subside. Until then, investors should closely monitor developments and brace for potential volatility.

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