S&P 500 Index

Stocks jittery as markets await tariffs

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Volatility was again the name of the game in equity markets as investors braced for President Donald Trump’s impending tariff announcement, which promises to reshape global trade dynamics. With uncertainty swirling around the scope and impact of his so-called reciprocal tariffs, there remains little consensus on how markets will react as the final deliberations unfold.

A few headlines that have come out:

Trump administration official has confirmed that Amazon has put in a bid to buy TikTok

Tesla Inc. jumped 5% on hopes Elon Musk will refocus on the carmaker as a news report suggested his time as a top adviser to Trump may end soon.

US tariffs will be in bands of 10%, 15% and 20% -- Sky News
The bands will differ by both country and industry depending on how the White House views barriers to trade.

CNBC: TRUMP ADMINISTRATION CONSIDERING REVOCATION OF TARIFF EXEMPTIONS FOR CHEAP SHIPMENTS FROM CHINA - SOURCE

Trump auto tariffs due to take effect at midnight - Reuters

The key resistance area to watch today is between 5670 to 5695 - as shaded in yellow on the chart. This zone was previously support and has now turned into a bit of resistance, capping today's gains. Will the selling pressure resume from here or do we go back above it?

It all depends on severity of tariffs.

In the event we go lower, then the area between 5500 to 5550 is the key support zone to watch.

In the event the market go higher, and break through 5670 to 5695 zone, then the 200-day average and prior resistance near 5770-5787 will come into focus next.

By Fawad Razaqzada, market analyst with FOREX.com

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