Markets rebound after 'bloody Monday'; investors eye tariffs

On Monday, a wave of sell-offs swept through the global markets, affecting European, Asian, and American exchanges.

However, after the "bloody Monday," a significantly more optimistic Tuesday arrived. The session on the main Asian stock exchanges (started late at night Eastern Time) showed a clear change. The Japanese Nikkei 225 index gained an impressive 5.58%, a significant rebound after yesterday's sell-off. The session chart shows dynamic growth from the opening, maintaining a positive trend throughout the trading day.

The Chinese Hang Seng in Hong Kong also had a rising session, bouncing back from yesterday's close. Despite significant volatility in the first part of the day, with fluctuations between 20,100 and 20,400 points, the index maintained a positive trend. Buyers' pressure was evident in the first hour of trading, with the index rising dynamically from the opening.

The Chinese SSE Composite index from Shanghai also ended the session on a positive note, reaching 3,125 points compared to yesterday's close of 3,097. Today's rebound in Asian markets suggests a change in investor sentiment after yesterday's global sell-off. The initial panic related to U.S. tariff announcements seems to have somewhat subsided, and investors have started to see opportunities to purchase at reduced prices.

Much better moods eventually prevailed on the American stock market, where red dominated right after the opening. By the end of the day (the exchanges closed at 4 PM Eastern Time), the S&P 500 index, which includes 500 major American stock companies, ended Monday's session with a slight decline, down 0.23%. This means that after initial losses, it rebounded significantly during the day but did not return above the previous closing.

The dynamics of the index suggest that investors are taking a wait-and-see position—balancing between recession fears and looking for investment opportunities.

The tech-heavy Nasdaq Composite gained 0.099%, reaching a level of 15,603 points, an increase of about 15 points. The relatively positive moods among tech investors contrasted with the situation in other sectors. The index showed volatility during the day, after initial declines in the morning hours, it recovered losses and ended the session with a slight gain.

Meanwhile, the Dow Jones Industrial Average, representing the most prominent American industrial companies, ended the day with a decline of 0.91%, losing 349 points and stopping at 37,966 points. The index also started the session with sharp fluctuations. Despite attempts to recover losses midday, selling pressure ultimately prevailed.

Gar Meng Leong from Pew Research Center, one of the most respected research institutions in the USA, admits that Americans' sentiments are not uniform.

"Concerns about tariffs are fueling not only investors' imaginations. They are one of the most important topics among ordinary Americans. We are just finishing research on this subject. It will allow us to precisely answer the question of what concerns among citizens the new tariff policy raises," he stated.

He also admitted that recent Pew Research Center studies shed light on social sentiments in the United States.

- Americans remain deeply divided on key political issues. The economy continues to be one of the most serious problems in the eyes of the country's residents, with only 24% of adults rating its condition as good or excellent. Significant differences can be seen in the approach to immigration, where 73% of Republicans see illegal immigration as a huge problem, while among Democrats, this percentage is only 23%," says Gar Meng Leong.

The Pew Research Center's research shows that in terms of economic forecasts, American society presents clearly outlined party divisions.

As many as 73% of Republicans predict that the economic situation will improve in a year, while 64% of Democrats expect it to worsen," says Gar Meng Leong.

Additionally, 67% consider healthcare access a very serious problem, and 63% express concern about inflation. Pessimism also prevails in forecasts regarding food prices and other consumer goods.

43% of respondents believe prices will rise, compared to 37% expecting improvement. The availability of housing (42% expect worsening compared to 29% anticipating improvement) and healthcare (45% predict cost increases, while only 20% expect costs to decline) also raises concerns," says the expert.

While the overall market situation on Monday was better than in the previous two trading days, Apple once again suffered greatly, losing 3.7% of its value amid rising concerns about the impact of President Trump's tariffs. The three-day sell-off of Apple shares led to a 19% decline, translating to a loss of $638 billion in market capitalization.

Analysts indicate that Apple is among the companies most exposed to the effects of the trade war, mainly due to its dependence on China, which is set to be subject to 54% tariffs. According to UBS estimates, the price of the most expensive iPhone may rise by approximately $350, about 30% of the current price of $1,199.

Experts from Barclays predict that Apple may raise the prices of its products or reorganize its supply chain so that imports to the USA come from countries subject to lower tariff rates.

The recent market turmoil caused by President Trump's administration's announcement of new tariffs has painfully affected the fortunes of the world's richest people.

Elon Musk recently lost as much as $19.9 billion, and his total loss since the beginning of the year has already reached an astronomical $130 billion. Still, he remains the richest person in the world, with a fortune estimated at $302 billion.

Jeff Bezos, second on the richest list, lost $7.59 billion, and his wealth shrank by $45.2 billion since the beginning of the year. Mark Zuckerberg, with a fortune of $179 billion, recorded a loss of $9.44 billion.

Among the 17 wealthiest individuals on the list, only Warren Buffett can boast an increase in wealth of $12.7 billion since the beginning of the year, despite the recent loss of $10.7 billion. During the last change, the 17 wealthiest people in the world lost over $109 billion.

Analysts highlight the enormous impact of political decisions on the current market situation. According to a survey conducted by CNBC, 69% of CEOs of American companies expect a recession following the tariff plans announced last week.

"This is Trump's recession," stated one of the CEOs participating in CNBC's so-called flash survey.

JPMorgan CEO Jamie Dimon also emphasizes the importance of these decisions for the economy. "Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth," he stated in a commentary for investors.