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This week's stock market (^DJI, ^IXIC, ^GSPC) rally triggered by the Trump administration's trade talks with China, resulting in a 90-day tariff truce between the two nations, has some Wall Street experts erring on the side of caution.
Yahoo Finance senior business reporter Ines Ferré examines several strategist notes warning of the sudden resurgence in equities while US-imposed trade tariffs still stand.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
The recent stock market rally fueled by President Trump's tariff relief and trade negotiations drawing caution from some strategists. Yahoo Finance's Ines Ferre joins us now to discuss with Yahoo Finance's weekly investor playbook and this.
Yeah, Josh, and the strategist that we spoke with are cautious. They're basically saying that this rally really it was it bounced back stocks bounced back very quickly. It's been a sharp rally. There may be some overextension happening. And let me just show you this quote from Jeffrey Kleintop from Charles Schwab. Basically saying that he's concerned of the magnitude of the rally that we've seen coming back, that the market might be a little bit too enthusiastic that the trade worries are behind us. Because even though we've had this breakthrough when it comes to the US and China, the US and the UK, analysts are still saying that you're looking at the tariff rate that's still higher than what it was at the beginning of the year. UBS this week saying that it's about six times higher. So without concrete deals really inked and signed, then analysts are saying that there's still quite a bit of uncertainty. Now, we have had a good earning season over the last for the first quarter, but still you had a lot of management that talked about uncertainty. You've had some guidance pulls as well. And then you had Walmart this week that was basically saying that they may have to increase prices just because you still are seeing the tariff rates that are higher than at the beginning of the year. As far as where strategists are saying that investors can put their money. Well, first of all, they're saying think long term, don't follow these short-term moves, but they're also looking at defensive and their defensives, and they're looking at international markets. Also Europe because as one strategist put it, Europe is not in a trade war, and also they are beefing up their defense.