METRO DETROIT (WXYZ) — Financial markets across the globe are nosediving following President Donald Trump's tariffs and reciprocal tariffs from China.
We've watched U.S. Stock futures all night. The dow has hovered around 1600 points, more than four percent lower.
This follows the worst two-day stretch for stocks in five years, since the Pandemic.
On Friday, the Dow dropped more than 2200 points, the NASDAQ fell more than 960 points and the S&P 500 lost 320 points. Markets in Japan, Korea, Australia, Germany, Paris and Great Britain all reported losses overnight.
President Trump announced tariffs going into effect on more than 50 countries on Wednesday, sparking massive sell-offs on Thursday and Friday. In two days, the market lost $6 trillion in revenue.
Financial Expect Joe Saul Sehy says investors off-loaded energy, technology and financial services stock, while companies like Proctor and Gamble who make household items like soap, toiletries and cleaning products, things people use the most, fell the least.
Sehy says his concern isn't the stocks; it's how tariffs will impact your budget. Yale's budget lab predicts all 2025 tariffs will raise daily life prices by 2.3 percent.
"In other words in the course of a year things are going to cost us $3800 more to live the same lifestyle we used to live," Sehy said. "I’m not worried about your stocks, I’m worried about you budget. I think this is a time we need to track out expenses. Figure out what the budget is. Figure out what’s important to us and dump the rest because you’re going to see prices go up."
Sehy also says right now is not the time to panic sell; if you are not expecting to use that money in the net decade, leave it there.
