Last Friday, President Trump’s tariff threat sent U.S. equities into a sharp selloff — the S&P and Nasdaq plunged intraday before recovering — and crypto markets experienced massive liquidations, illustrating how policy rhetoric now moves asset prices fast Business Insider coverage.
By Tuesday, futures and stocks rallied when the White House signalled the 100% tariff could be conditional, but the swings left the VIX elevated and traders more sensitive to headlines, according to markets reporting CNBC’s Daily Open.
Why it matters: headline-driven volatility can derail earnings momentum, raise hedging costs, and make short-term positioning perilous — even as underlying fundamentals (bank earnings and AI demand) look constructive. Some strategists warn that the market’s high valuations increase vulnerability to policy shocks.
Investor takeaways: flows showed rotation into perceived safe or quality names during the dip, while AI and chip names remained focal points for both upside and downside risk. Expect continued rapid repositioning around each new social‑media post or official trade comment.
