Powell warns + tariff fluctuations, retail investors in the US stock market are highly cautious
Against the backdrop of Trump's adjustment of tariff policies, investor bullish sentiment has declined this week. According to a survey by the American Association of Individual Investors, the proportion of bearish investors fell from 58.9% to 56.9%, while the proportion of bullish investors dropped from 28.5% to 25.4%. Powell warned that tariffs could raise inflation and drag down economic growth, affecting market sentiment. The S&P 500 and Dow Jones Industrial Average saw slight increases, while the Nasdaq index fell by 0.5%
According to the Zhitong Finance APP, amid the backdrop of U.S. President Trump's continuous adjustments to tariff policies, investor bullish sentiment has declined this week. The American Association of Individual Investors (AAII) weekly survey ending on April 16 showed that the proportion of bearish investors (those expecting the market to decline in the next six months) fell from 58.9% last week to 56.9%.
At the same time, the proportion of bullish investors dropped from 28.5% last week to 25.4% this week. The percentage of investors holding a neutral stance (expecting stock prices to remain flat in the next six months) increased from 12.5% last week to 17.7%. This weekly survey by AAII, which began in 1987, primarily collects respondents' expectations for market trends over the next six months.
Last week, Trump announced a 90-day delay on most reciprocal tariffs, excluding China, which triggered one of the strongest intraday rebounds in Wall Street history. The S&P 500 index recorded its largest single-day gain since the 2008 financial crisis, while the Nasdaq Composite index saw its second-largest single-day gain in history.
However, comments from Federal Reserve Chairman Jerome Powell on Wednesday dampened market enthusiasm. He warned that tariffs "are very likely to at least temporarily push up inflation" and drag down economic growth, which clearly affected investor sentiment.
In the past week, the S&P 500 index and the Dow Jones Industrial Average rose slightly by 0.15% and 0.19%, respectively, while the Nasdaq index fell by 0.5%.
