Stock Market Volatility: Should We Really Keep Calm and Carry On?

In mid-March, the US stock market had one of its worst moments since last summer, in large part over mounting fears of a trade war. Widespread uncertainty surrounding President Donald Trump's economic policies, including tariffs and massive slashing of federal programs and funding, sent the S&P 500 index, a benchmark for US stocks, on a four-week losing streak. And the market could be in the red for a while. "It is very difficult for businesses to plan in this chaotic tariff environment created by the Trump administration," said Robert Johnson, CEO of Economic Index Associates and professor of finance at Creighton University's Heider College of Business. Markets usually react negatively to tariffs, which are taxes on imported goods that usually drive up prices for consumers and stifle global trade. While escalating tariff threats are eroding both consumer and corporate confidence, cuts to the federal workforce are causing households to curb spending and sparking fears of a recession ... Read full article.