Market Update – 4/9/2025

Markets remain gripped by volatility as headlines continue to fuel uncertainty. On Tuesday, we witnessed another rollercoaster trading session: a strong opening rally gave way to losses by mid-day, with the major averages ultimately closing deep in the red.

Several developments weighed on sentiment throughout the day. Chief among them was confirmation from U.S. officials that the additional 50% tariffs threatened on Chinese goods would indeed be imposed—bringing total tariffs to 104%. In response, Beijing announced it would raise its tariffs on U.S. goods to 84%, effective April 10, according to media reports.

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dding to market jitters, President Trump indicated that the U.S. will soon introduce a “major” tariff on pharmaceutical imports. While he noted that China “wants to make a deal,” no formal outreach has yet been made. At this juncture, a 30-, 60-, or 90-day “time-out” period on tariff implementation could provide a window for constructive negotiation.

In such an environment, it’s understandable that some investors may feel inclined to retreat to the sidelines. But history reminds us: some of the market’s strongest rebounds tend to follow periods of extreme pessimism.

Indeed, multiple indicators are flashing signs of fear and oversold conditions. Sentiment and positioning remain heavily skewed to the downside, which means even a modest dose of positive news could trigger a meaningful rally—much like what we saw at Tuesday’s open.

Trade negotiations remain a key driver, and any clarity—particularly around what terms the administration might find acceptable—could be the catalyst markets need to regain their footing.

And, finally, contrary to the belief that the administration is ignoring market weakness, the following was posted earlier today on Truth Social…