We have several key updates to share in today’s Weekend Market Review with Brett Witkowski.

The newly imposed tariffs were 2x to 3x worse than initially anticipated. Unsurprisingly, the market reacted negatively, gapping down and falling below the 200-day moving average. In response, China announced reciprocal tariffs, amounting to roughly half the value of the tariffs imposed by the U.S.

We are now experiencing a slide in the market. But let’s take a moment to consider what potential positives could lie ahead.

The S&P 500 bottomed today at 505.97, a level strikingly similar to the lows seen during the August carry trade unwind. We’re observing signs of disorderly selling, forced liquidations, and margin calls, contributing to the current volatility. The CBOE Volatility Index (VIX), a common measure of market fear, is not yet at the COVID-era highs but is approaching levels last seen in January 2009 and during the 2012 flash crash. Historically, such elevated fear levels often precede market bottoms.

Several potentially positive developments are being overlooked such as USMCA carve-outs, a semiconductor carve-out involving Taiwan, emerging trade opportunities with Vietnam, Cambodia, and the UK. While the estimated tariff impact is around $600 billion, it’s important to note that the U.S. economy is primarily services-based, not solely dependent on trade or goods.

Despite the intensity of this week’s downturn, there are still reasons for optimism as we look ahead.