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The stock market’s most reliable bulls are ringing the alarm bells.
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Ed Yardeni, Dan Ives, and Tom Lee voiced their concerns about the Trump tariffs.
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The stock market entered bear market territory on Monday as investors failed to get relief.
The most reliable bulls on Wall Street are ringing the alarm bells as President Trump’s tariffs plunge markets into chaos.
The S&P 500 briefly entered bear market territory on Monday, following the footsteps of the Nasdaq 100, which closed in bear territory on Friday. The three-day decline has grown to as much as 14%.
These charts show just how painful the market implosion has been.
The S&P 500 peaked at 6,144 on February 19, putting the bear market “line in the sand” for the benchmark index at about 4,915. The index hit an intraday low of 4,835 on Monday.
What were the stock market’s biggest winners over the past decade turned into the biggest losers so far this year.
Year-to-date, Tesla is down 43%, Nvidia is down 30%, Apple is down 27%, Alphabet is down 23%, Amazon is down 21%, Microsoft is down 16%, and Meta Platforms is down 14%.
The Hang Seng Index plunged 13.2% on Monday, its biggest one-day decline since 1997.
Investors aggressively sold shares on fear of an escalating trade war between the US and China. On Friday, China retaliated against the US with its own tariffs on US imports.
Oil prices were already depressed over the last year, but the rollback of OPEC production cuts and fears of an economic slowdown have hammered US and global crude prices, with the commodity down 15% in three days.
A potential recession would reduce demand for the commodity just as supply is increasing.
Meanwhile, some of Wall Street’s most enduring bulls have been forced to change their tunes as the sell-off ramps up.
Here’s what the three commentators have to say amid the market chaos:
“If these tariffs (in current forms/rates) hold there is no debate… it would set the US tech world back a decade in our opinion while China is the clear winner… and we see no debate,” Ives said in a note on Saturday.
Ives has historically been an ardent tech bull, able to see the silver lining even in some of the most dire market scenarios over the last few years. But even for him, the trade war is hard to sugarcoat.
“In one day this tariff policy if enacted will create an upside down supply chain, massive costs, major Cap-Ex delays due to uncertainty, and slow down US tech innovation… not a debate.”
“These reciprocal tariffs (trade deficit converted into some odd calculation) implemented would cause an economic Armageddon and stop the US tech world in its tracks…and wipe out a bright future ahead in one global policy mistake that will reverse US tech dominance in our view.”
