Wall Street on Edge: Awaiting Tariff Clarity Amid Economic Jitters

Wall Street is on tenterhooks as investors await key economic data and clarity on new tariffs from the Trump administration. Recent tariffs have sparked concern about global economic repercussions, with U.S. equities experiencing volatility. Analysts predict potential job cuts and inflationary pressures, with major indexes like the S&P 500 and Nasdaq showing mixed movements.

Wall Street braces for a cautious opening on Wednesday, as investors eye economic data and await further details on Trump administration tariffs expected to take effect next week. The uncertainty around the new tariffs has left markets in a state of flux.

After a temporary respite following President Trump's hints of possible tariff exemptions, the major indexes closed at recent highs. Nonetheless, concerns over the extent of U.S. tariffs and possible retaliatory actions by trading partners weigh heavily on market sentiment, according to Jefferies' economist Mohit Kumar.

Aside from tariff worries, a downturn in U.S. consumer confidence reaching a four-year low underscores the prevailing market instability. Furthermore, the labor market may feel the strain as investment banks prepare for potential job cuts amid shrinking deal prospects.

(With inputs from agencies.)