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Wall Street throws a tantrum as tariff tornado hits - Algos seek therapy


Published on 2025-02-05 06:21:08 - FXStreet
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  • In the pre-market, stocks around the world were deep in the RED, the VIX surging by 20%, and the moment the bell rang at 9:30 - the bleeding started
  • .the Dow down 800 pts, the S&P down 100, Nasdaq, Russell,

The article from FXStreet discusses the tumultuous reaction of Wall Street to the recent tariff announcements, metaphorically described as a "tariff tornado." The financial markets experienced significant volatility as algorithmic trading systems, or "algos," struggled to adapt to the sudden policy changes, leading to a chaotic trading environment. The piece highlights how these tariffs have disrupted market expectations, causing a sharp decline in stock indices and a rush towards safe-haven assets. It also notes the psychological impact on traders, with many feeling overwhelmed by the unpredictability, leading to a humorous mention of "algos seeking therapy." The article concludes by suggesting that while the immediate market reaction was negative, the long-term effects of these tariffs remain uncertain, with investors and algorithms alike needing to recalibrate their strategies in response to the new economic landscape.

Read the Full FXStreet Article at:
[ https://www.fxstreet.com/analysis/wall-street-throws-a-tantrum-as-tariff-tornado-hits-algos-seek-therapy-202502041245 ]