Charles Schwab: The volatility of the US stock market will not end in the short term

Charles Schwab wrote in its market outlook that the stock market has fallen sharply due to global trade concerns and the potential impact on economic growth. President Trump’s stance on tariffs appears to be quite severe, and some countries have taken countermeasures. On the positive side, Trump has indicated a willingness to negotiate, and at least for now, there seems to be some willingness to negotiate around trade, but the level of uncertainty remains very high. The institution believes that while the new earnings reporting season is about to begin, its significance has undoubtedly been overshadowed. The focus and direction of the stock market will be linked to any developments in global trade. If there are no changes, or worse, if the U.S. faces retaliation from more countries, stocks may still face selling pressure. Of course, given the current oversold condition, any positive developments could lead to a significant rebound in stocks. Therefore, volatility is unlikely to end in the short term