#MarketPullback

The current market pullback appears to be driven by a confluence of factors, including:

New Tariffs and Trade Uncertainty: President Trump's announcement of new, steep tariffs on products like pharmaceuticals (100%), kitchen cabinets (50%), upholstered furniture (30%), and heavy trucks (25%) has injected fresh uncertainty into the market. While some analysts note the broad market reaction was muted due to specific exemptions, certain sectors, particularly pharmaceuticals in Asia and Europe, experienced immediate declines. The overall trade policy shift continues to raise concerns about supply chain disruptions and future inflation.

Federal Reserve Rate Expectations: Economic data suggesting the U.S. economy remains stronger than expected (e.g., in GDP growth and jobless claims) has led to speculation that the Federal Reserve may be less likely to cut interest rates multiple times in the near future. This has put pressure on stock valuations, especially in the rate-sensitive technology sector, by increasing the cost of capital and lowering the perceived present value of future cash flows.