Investors brace for more volatility with Trump set to address Congress

Published On Mar 4, 2025, 4:24 PM

Investors are anticipating increased volatility in the stock market due to President Trump's upcoming address to Congress following the implementation of new tariffs that have already affected asset prices. The speech is expected to provide insights into Trump's economic policies, which are currently contributing to inflation concerns and a slowdown in economic growth. Major U.S. indexes like the S&P 500 and Nasdaq have seen significant declines recently, leading to increased market unease, reflected in the rising Cboe Volatility Index. Market analysts are approaching this situation with caution, with some preparing for a bear market if Trump's rhetoric turns unfavorable.

Stock Forecasts

SPY

Negative

The upcoming address could either reassure investors about pro-growth policies or create further uncertainty regarding Trump's tariffs and their impact on the economy.

XLY

Negative

If tariffs are continued or escalated, sectors reliant on imports could be significantly impacted, leading to declines in their respective stocks.

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