Stock futures for the Dow are down 4% as tariffs and uncertainty drive the market decline. Experts urge investors to stay calm and avoid panic selling.
GREENSBORO, N.C. — Stock futures for the Dow Jones are down 4 percent ahead of the market reopening tomorrow, following a significant drop last week. Experts say the market plunge is driven by a simple factor: tariffs.
Ja’Net Adams, with EMACK Consulting and Debt Sucks University, said, “The White House has said they’re not budging with it. And so if they’re not budging and all the other countries aren’t budging, then guess what, the United States market as well as the global markets will continue to tumble.”
Another key factor contributing to the market’s struggles is uncertainty.
“The market hates uncertainty. Uncertainty can be at times worse than bad news, and this has created such massive uncertainty,” said Michael Wittenberg, president of Wittenberg Priddy Blankenship.
Financial experts urge investors to stay calm, though that can be difficult for some.
“There are people who are near retirement, maybe 10 years after retirement, they are panicking and they have the right to do so,” Adams said.
Panic selling could harm investors in the long run, so experts recommend avoiding that approach. They also suggest ensuring a diversified portfolio. But most importantly, financial advisors urge people to talk to a professional before making any major moves.
“Typically, people who panic tend to lose. So, most advisers would say, try not to panic, make a rational decision,” Wittenberg said.
Despite falling stocks and 401(k) balances taking a hit, Wittenberg pointed out that the overall economy remains strong—at least for now.
“The best advice is to keep your long-term saving strategy in place,” said Dr. Scott Simkins, an Associate Professor in the Department of Economics, Willie A. Deese College of Business and Economics at North Carolina A&T State University. “You will likely need to cut back on spending – e.g., international vacations, frequency of dining out, putting off new car purchases, etc. until markets stabilize. How long that will take is anyone’s guess right now. There is just so much uncertainty in the economy right now.”
RELATED: Trump says he’s not backing down on tariffs, calls them ‘medicine’ as markets reel
RELATED: US families could see higher back-to-school costs due to tariffs
