NEW YORK, March 6 (Reuters) -
Major U.S. stock indexes declined sharply on Thursday with
investors concerned about the impact President Donald Trump's
trade policy may have on companies and the broader economy,
while Marvell Technology's ( MRVL ) revenue forecast sparked
concerns about spending on artificial intelligence
infrastructure.
Below are investor comments about the selloff, which saw the
S&P 500 fall below its 200-day moving average for the
first time since November 1, 2023.
ART HOGAN, B. RILEY, MARKET STRATEGIST, BOSTON
"The administration seems to be trying to play a ping pong
game by announcing something and then pulling it back on
tariffs, but this time it's not working. People reacted to
Howard Lutnick's attempt to calm the markets with distrust.
Clearly, there are signs of a slowdown ahead of any tariffs
really digging in and faced with uncertainty, consumers,
corporate leaders and investors are all going to freeze and put
off longer-term business plans."
"At this point, there's nothing left to give the market a
boost now that the excitement of electing a president who was
seen as pro-business has worn off."
SAM STOVALL, MARKET STRATEGIST, CFRA, ALLENTOWN,
PENNSYLVANIA
"The longer that these tariffs remain in place, the lower
that the market is likely to go because of the increasing threat
of inflation and recession."
"To make markets feel good, it would have to be a more broad
based and more sweeping lift of the tariffs, not just individual
sectors, such as automakers."
"Marvell ( MRVL ) earnings is also causing investors to
think the AI-trade is slowing down, and it's time to take
profits now that we can. The combination of tariffs and
technology has been explosive for stock prices."
BILL STERLING, GLOBAL STRATEGIST, GW&K INVESTMENT
MANAGEMENT, BOSTON
"A continuation of this on-again, off-again with tariffs
particularly with Mexico and Canada (is what is creating
uncertainty in markets)."
"The rational economic response to business leaders when
there's such a high degree of uncertainty is to sit on their
hands and just defer making decisions."
"The other is simply the size of the tariffs. This is way
beyond what was experienced in 2018 with the you know so-called
China trade war and this could raise inflation, which is what
the Fed cares most about, by a full percentage point or a little
bit more over the next year."
BRIAN JACOBSEN, CHIEF ECONOMIST, ANNEX WEALTH MANAGEMENT,
MENOMONEE FALLS, WISCONSIN
"On-again, off-again tariffs may be worse than just getting
the tariffs done with. The uncertainty isn't resolved, it's just
prolonged. Businesses will still try to hike prices just in
case. Consumers may be more willing to accept price increases
because they're afraid of how much higher prices could go. It's
not a healthy dynamic. The Fed isn't in a position to run to the
rescue."
CAROL SCHLEIF, CHIEF MARKET STRATEGIST, BMO PRIVATE WEALTH,
MINNEAPOLIS, MINNESOTA
"A combo of things has come spilling out the worry closet
this week - tariffs started it (their actual imposition) and it
continues given the flip flopping. Businesses are having a tough
time adjusting and the data out recently - including this week -
show. Sentiment (business and consumer) is down, inventories way
up, job losses are mounting, and commentary from the Fed's beige
book all indicate business is having a tough time planning and
consumers are concerned."
"Recent tech earnings reports are still making investors
question how much longer the data center build-out goes on, even
as excitement grows in use cases by more (and smaller)
businesses."