US equities are dropping, hard, in Sunday evening trade

💡 DMK Insight

Trump’s tariff hike to 15% is a game-changer for traders: here’s why. Tariffs can significantly impact market sentiment and trade flows, especially in sectors like commodities and manufacturing. With the Supreme Court ruling against the previous tariffs, the market might have expected a more stable trade environment. However, Trump’s quick pivot to increase tariffs could lead to heightened volatility in related assets. Traders should keep an eye on commodity prices, particularly steel and aluminum, which often react sharply to tariff changes. If these tariffs lead to increased production costs, we might see a ripple effect across various sectors, potentially impacting inflation metrics. On the flip side, this move could also strengthen the dollar as investors seek safe havens amid trade uncertainties. Watch for key resistance levels in the dollar index, particularly if it approaches recent highs. For those trading equities, sectors like industrials and materials will be crucial to monitor as they may face headwinds from increased costs. Keep an eye on the next earnings reports for these sectors to gauge the impact of tariffs on profitability.