📉 Stocks Pressured by Fed Rate-Cut Doubts & New Trump Tariffs

Volatility picked up as traders weighed Fed signals and fresh tariff headlines.

What’s driving the sell-pressure?

Investors dialed back expectations for rapid U.S. rate cuts after recent Fed remarks emphasized a data-dependent path, even following September’s first trim. At the same time, the White House unveiled a sweeping tariff package — including 100% duties on branded pharmaceuticals (with exemptions for companies building U.S. plants) and 25% on heavy trucks, plus higher levies on furniture and other goods. Sources: Reuters; Al Jazeera.

How stocks reacted

Drug-tariff shock hit pharma shares; broader markets turned choppy.

• Asia: Pharma and tech led losses after the drug-tariff shock and weaker IT outlooks (India’s Nifty/Sensex slipped as pharma exporters fell).

• Europe: Early dip, then some stabilization on hopes for carve-outs/caps for EU sectors.

• U.S.: Futures and cash trading were choppy; rate-cut odds swung with inflation and jobs data in focus.

What exactly is in the tariff wave?

• Pharmaceuticals: Headline 100% levy on branded/patented drugs, with potential exemptions tied to U.S. manufacturing build-outs; allies (EU/Japan) point to prior accords that could cap some categories.

• Heavy trucks: 25% tariff (effective Oct. 1).

• Furniture/cabinetry: Many lines face 30–50%.

• Selective relief: A recent order allows exemptions on items not produced (or insufficiently) in the U.S., and for partners striking reciprocal deals.