Markets seek stability as tariff concerns and China’s possible stimulus dominate

Investors have faced a turbulent stretch marked by consecutive sell-offs and fresh uncertainties surrounding global trade. Amid the downturn, Jamie Dimon has highlighted tariff risks while Chinese authorities consider policy tools to cushion any economic slowdown. Below is a brief overview of recent developments that continue to shape the outlook for equities, trade, and growth.

Extended sell-off hits global equities

Equity markets have been under pressure for three consecutive sessions, wiping out billions of dollars in market capitalization. Concern over trade tensions and broader macro uncertainties fueled a wave of selling, particularly in cyclical sectors such as industrials and consumer durables. Investors noted that the downward momentum was fairly broad-based, with technology shares also succumbing to profit-taking after recent run-ups.

Jamie Dimon on Tariff Policy

Speaking on global trade issues, Jamie Dimon warned that recent tariff measures pose challenges for businesses seeking clarity. “Tariffs are a real headwind that can weigh on both sentiment and investments,” he said, stressing the need for more transparent and predictable policies. He added that prolonged uncertainty in trade relations could hamper growth across multiple regions, although he remained confident that prudent corporate planning and resilient consumer demand might help cushion any near-term volatility.

China explores front-loading support

In a sign of proactive economic management, Chinese authorities are reportedly discussing ways to front-load stimulus or support measures to counter external risks. Among potential steps are earlier disbursements of funds, accelerated infrastructure spending, and credit provisions aimed at stabilizing growth. Traders see any fast-tracked measures by China as potentially dampening the impact of slower global demand and insulating parts of the supply chain from additional volatility.

Stocks trim sell-off on stimulus bets

Following the steep declines across risk assets, equities began to pare losses as speculation intensified that major economies—led by China’s possible initiatives—may take action to guard against further deterioration in growth. Some traders also noted growing hopes for potential policy adjustments in the US and Europe if trade and supply-chain disruptions worsen. This sentiment shift helped lift battered sectors such as technology and energy from session lows, although volatility remained pronounced.

Looking ahead

• Trade clarity: Markets are closely watching for any signs of progress in global trade negotiations, as tariff developments continue to drive risk sentiment.
• China’s policy follow-through: Any concrete details on front-loaded support from Beijing could bolster regional and potentially global assets, especially if it stabilizes demand and investor confidence.
• Company guidance: Corporations in the industrial and consumer sectors are likely to revise forecasts if cost structures change due to tariffs, which could shape market direction in the coming weeks.
• Central bank actions: Talk of easing or stimulus in various regions may spark further shifts in bond yields and equity valuations, depending on how quickly policymakers choose to act.

So far, despite ongoing headwinds, markets have shown the ability to reverse some of the steepest intraday losses when investors sense potential policy relief on the horizon. Keeping an eye on trade news flow, corporate commentary, and central bank signals will remain critical to navigating this period of heightened uncertainty.

Prepared by Nour Hammoury, Chief Market Analyst at SquaredFinancial
Nour is an investor, independent market strategist, and financial advisor. He holds a BA in Finance and Banking Science from Al-Ahliyya Amman University and a CFTe in Economics from the International Federation of Technical Analysts. He has more than 15 years of experience in forex, stocks, and global economic developments, as well as central bank policies and intermarket analysis. He appears regularly on major international TV networks, such as BBC, Al-Jazeera, Al Hurra, CNBC, and Bloomberg, holding open discussions and sharing insights and readings of the markets and trends.

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