Wall Street hopes to bounce back after the market lost $3 trillion in value on Thursday following President Donald Trump's announcement of a wide range of tariffs against countries worldwide— making it the market's worst day since March of 2020 during the global pandemic.
Trump dismissed the hit and equated it to the time after a patient has an operation and recovers— predicting that the markets will boom.
News 5 spoke to Rob Burnette, CEO of Outlook Financial Center, who said the best thing investors can do now is take a deep breath.
“I tell my clients, you're probably looking at 60 to 90 days before this settles out and we see what the new normal is going to be," said Burnette. "It's going to take that long to get the various conversations to happen between the countries with the large transnational corporations. So right now, I just think that the market's having a temper tantrum.”
While this was the worst day on the market since March of 2020, he advised investors to remember what happened in the months following.
"We were down 31% in a very short period of time. Yet, if you basically did nothing by the end of the year, you had a positive return for the year, even though there's a 31% down in the first quarter,” Burnette said.
But that doesn't consider the second part of the one-two punch: the tariffs are expected to affect the cost we pay for everyday goods.
Cost economists like Natasha Sarin, an economist professor of law at Yale Law School, predict that thousands of dollars a year will be spent on top of what people are paying now.
“If you buy avacodos, if you buy Modelo beer, if you buy literally anything. If you go to the toy store and you’re looking for toys for your children... you go to Walmart [and] you're looking to buy toys for your children— prices are going to rise because these are goods that are imported into this country that American consumers rely on,” Sarin said.
Trump and his team have continued to brush off concerns as JP Morgan said Friday that there is a 60% chance of a recession.
