US equity markets may face challenges in gaining momentum over the next two weeks due to uncertainty surrounding upcoming tariffs, set to take effect on April 2. Major stock indexes are expected to lack clear direction as clarity on these levies remains pending.
Analysts suggest that the market will find it difficult to rally significantly during this period. Nevertheless, it may be positive that traders have potentially already factored in a substantial tariff increase. Investors are closely monitoring any updates on policy changes.
Limited Market Rallies Expected
Additionally, market rallies are anticipated to be limited following April 2, with traders focusing on April Opex, scheduled for April 18. Today, March 21, 2025, marks another near-term risk event.
The uncertainty surrounding the trade measures has left equities in a position where decisive moves in either direction may prove difficult. With the introduction of new levies less than two weeks away, the absence of fresh guidance means that investors are left navigating a market that lacks strong conviction. Sentiment remains cautious as traders attempt to gauge whether current pricing already reflects the potential economic strain these policies might introduce.
While the stock market has struggled to gain traction, there is a case to be made that some of the expected policy impact has already been incorporated into valuations. For this reason, dramatic sell-offs may not be automatic. However, without a definitive resolution, the likelihood of sustained upward momentum also remains in question. Should fresh details confirm harsher measures than traders had originally anticipated, additional repricing cannot be ruled out.
Uncertainty And Market Volatility
Even beyond April 2, the ability for equities to stage a meaningful recovery appears constrained. Market participants are already looking ahead to options expiry on April 18, which presents its own set of pressures. Positioning adjustments linked to this event could introduce volatility, particularly if broader uncertainty persists.
In the immediate term, attention shifts to today’s trading session. March 21 brings risks that may influence near-term sentiment, and given the sensitivity to external factors, abrupt market reactions remain possible.
