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Dow sinks more than 700 points as tariff uncertainty roils markets

Kraig Pakulski 0 20 Article rating: No rating

By John Towfighi, CNN

New York (CNN) — Stocks fell, gold moved higher and volatility picked up Monday as uncertainty about President Donald Trump’s new proposed tariffs continued to swirl on Wall Street.

The Dow was down 742 points, or 1.5%, in mid-morning trading. The broader S&P 500 fell 1.04%, and the tech-heavy Nasdaq Composite fell 1.2%.

After the Supreme Court on Friday struck down the tariffs Trump had levied using an emergency powers law, the president over the weekend announced he would hike tariffs to a new level of 15% on imports into the United States via different legal authority.

The renewed focus on tariffs, in addition to confusion about potential refunds, is clouding the outlook for stocks. Wall Street’s fear gauge, the VIX, jumped 14% Monday and surpassed 20 points, a threshold that signals elevated volatility in markets.

“The push and pull with tariffs is likely to be a distracting theme for markets for the remainder of the year, albeit with less volatility than the initial shock last April,” Michael Landsberg, CIO at Landsberg Bennett Private Wealth Management, said in a note.

The US dollar slightly weakened against other major currencies. Treasury yields fell as investors scooped up bonds.

Gold, considered a haven amid uncertainty, rose 2.9% and climbed above $5,200 a troy ounce. “Fear” was the sentiment driving markets, according to CNN’s Fear and Greed Index.

More than 70% of stocks in the S&P 500 were lower Monday morning. Stocks eked out a gain on Friday, but sentiment weakened over the weekend as Trump said he would hike his new proposed tariff from 10% to 15%.

While investors are grappling with new tariff announcements, Wall Street is also wrestling with lingering weakness in technology and artificial intelligence stocks. The tech-heavy Nasdaq is down roughly 6% since hitting a record high in late October.

The S&P 500 is just 2.5% away from its record high set in January.

“The key issue for markets is not just the tariff level itself, but the unpredictability surrounding what comes next,” Daniela Hathorn, senior market analyst at Capital.com, said in a note.

This is a developing story and will be updated.

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La Corte Suprema acaba de darle a Trump una vía de escape para los aranceles, pero él no la va a aprovechar

Kraig Pakulski 0 15 Article rating: No rating

Análisis por Matt Egan, CNN en Español

La implementación de aranceles sin precedentes por parte del presidente Donald Trump ha inyectado una enorme incertidumbre en la economía global, ha afectado el crecimiento del empleo en Estados Unidos y ha aumentado los precios, de paso.

El viernes, la Corte Suprema le dio a Trump una vía de escape de su aventura arancelaria. Pero Trump dejó claro casi de inmediato que no la aprovechará.

Los jueces dictaminaron en una votación de 6 a 3 que muchos (aunque no todos) los aranceles de Trump son ilegales, lo que le da a la Casa Blanca una forma de salirse de los gravámenes a las importaciones más agresivos y potencialmente reducir el costo de vida de los ciudadanos.

Sin embargo, Trump no está dando marcha atrás en su arma económica favorita.

Trump sugirió que la Corte Suprema le dio permiso para intensificar su guerra comercial global mediante el uso de diferentes autoridades arancelarias para potencialmente aumentar los aranceles incluso más de lo que eran antes del fallo histórico.

“Si bien estoy seguro de que no fue su intención, la decisión de hoy de la Corte Suprema hizo que la capacidad de un presidente para regular el comercio e imponer aranceles sea más poderosa y más clara en lugar de menos”, dijo Trump en una conferencia de prensa en la Casa Blanca el viernes.

Todo esto sugiere que la nube de incertidumbre sobre los aranceles no va a desaparecer y podría volverse aún más espesa.

“Desafortunadamente, vamos a tener otro año de incertidumbre y caos. A Trump le encantan los aranceles y usará cualquier ley disponible para mantenerlos”, le dijo Scott Lincicome, vicepresidente de economía general y comercio del Cato Institute, a CNN en una entrevista telefónica.

Horas después de que la Corte Suprema emitiera su fallo arancelario, Trump anunció que impondría un arancel global del 10 % a las importaciones en virtud de la Sección 122 de la Ley de Comercio de 1974, una facultad distinta que no fue anulada por el alto tribunal. Durante el fin de semana, Trump elevó dicho arancel al 15 %, el nivel máximo permitido para los aranceles de la Sección 122, que también requieren la aprobación del Congreso después de 150 días, aunque Trump pareció restarle importancia a esta limitación.

Trump agregó que su Gobierno ya está explorando el uso de otras leyes que puedan emplearse para imponer aranceles.

Una opción que mencionó Trump es la Sección 301 de la Ley de Comercio de 1974, que requiere que el Representante Comercial de Estados Unidos realice investigaciones sobre acciones comerciales onerosas por parte de países extranjeros, pero no contiene ningún límite al nivel o la duración de los aranceles impuestos como resultado de esas investigaciones.

Otra opción que Trump planteó el viernes fue la Sección 338 de la Ley Arancelaria de 1930, que podría permitirle al presidente imponer aranceles de hasta el 50 % a las importaciones de países si considera que incurren en prácticas comerciales discriminatorias. La Sección 338 se deriva de la infame Ley Smoot-Hawley, a la que se atribuye ampliamente el agravamiento de los efectos de la Gran Depresión.

Trump también afirmó que la decisión de la Corte Suprema le permitía imponer un embargo total a los bienes de países extranjeros. El secretario del Tesoro, Scott Bessent, reiteró esta afirmación en Fox News el viernes e instó a los países a cumplir los acuerdos comerciales previamente alcanzados con el Gobierno.

Al ser consultado sobre si, al finalizar la implementación de los nuevos gravámenes, la tasa arancelaria será mayor que la actual, Trump respondió: “[Será] Potencialmente mayor. Depende. Lo que queramos. Pero queremos que sean justos para los demás países”.

La tasa arancelaria efectiva era de aproximadamente el 10 % antes del fallo de la Corte Suprema y actualmente se sitúa en torno al 4,5 %, según Eric

US tourists stranded in Mexico amid ‘really scary’ cartel violence

Kraig Pakulski 0 16 Article rating: No rating
Firefighters stand next to burned out buses in Puerto Vallarta

By Jack Guy, CNN

(CNN) — The killing of Mexican cartel leader Nemesio “El Mencho” Oseguera Cervantes on Sunday set off a wave of retaliatory violence from his gunmen, affecting areas popular with foreign tourists such as Puerto Vallarta and Guadalajara.

In response, the US State Department urged American nationals to “seek shelter and remain in residences or hotels,” while several US airlines suspended flights to the popular resort town Puerto Vallarta, stranding many tourists who were desperate to escape the violence and return home.

CNN spoke to a number of those affected, including Dallas resident Adryan Moorefield, who was set to travel home from Puerto Vallarta on Sunday but awoke to the news that members of organized crime groups had set buses on fire, blocked roads and clashed with authorities.

“It was such a complete shocker and it almost felt like being in the twilight zone,” Moorefield told CNN. “We’ve been to PV before and thought that this would be a no brainer place to come and do a quick, easy beach vacation.”

American tourist Jim Beck told CNN he ventured outside his hotel in Puerto Vallarta to get breakfast on Sunday and saw “taxi cabs blown up all over town, blocking the roads.”

“Then immediately, everyone was running down the street, screaming and yelling, and they told everyone to get back to their hotels,” Beck said.

Mari, another tourist who asked to go by her first name for privacy reasons, said her young family had been sheltering in their vacation rental and watching the unrest unfold outside.

“We have two little kids, and it’s really scary,” she said. “The entire bay was just covered in fire,” she added. “For hours, there was just a billow of smoke, hovering. You could not see anything across.”

Another US tourist, Travis Dagenais, told CNN that he was woken up in Puerto Vallarta on Sunday morning by so many loud noises that he initially thought construction work was underway.

“We woke up this morning to a lot of what I thought was a building demolition,” Dagenais said.

It took him some time to figure out what was happening as reports of chaos gradually began to surface on social media, he said. Soon he could see the unrest unfold from his balcony.

“I was able to see quite directly, a little too visibly, some of the tactics and some of the cars that were being set on fire, some of the looting that was taking place as local stores and buildings were being attacked,” he said, adding the city “smells like burnt rubber at the moment.”

Dagenais said he and other tourists are currently beset by a raft of uncertainties.

“How long does this lockdown, so to speak, last? How long does the airport stay out of operation? What are some of the ways out? What (are) some of those answers, or just some of the plans we can make?” he wondered.

Dagenais added that most of his fellow tourists were dealing with the sudden chaos “with a certain degree of patience and understanding of things that are beyond the individual’s control.”

“I really hope that everybody in this city, everybody in this country, is able to feel normalcy and is able to feel some degree of safety after this,” he added.

Shelter-in-place separates family

An American woman from California visiting family in Mexico told CNN that she had been temporarily separated from her son and left wonde

US tourists stranded in Mexico amid ‘really scary’ cartel violence

Kraig Pakulski 0 17 Article rating: No rating
Firefighters stand next to burned out buses in Puerto Vallarta


CNN

By Jack Guy, CNN

(CNN) — The killing of Mexican cartel leader Nemesio “El Mencho” Oseguera Cervantes on Sunday set off a wave of retaliatory violence from his gunmen, affecting areas popular with foreign tourists such as Puerto Vallarta and Guadalajara.

In response, the US State Department urged American nationals to “seek shelter and remain in residences or hotels,” while several US airlines suspended flights to the popular resort town Puerto Vallarta, stranding many tourists who were desperate to escape the violence and return home.

CNN spoke to a number of those affected, including Dallas resident Adryan Moorefield, who was set to travel home from Puerto Vallarta on Sunday but awoke to the news that members of organized crime groups had set buses on fire, blocked roads and clashed with authorities.

“It was such a complete shocker and it almost felt like being in the twilight zone,” Moorefield told CNN. “We’ve been to PV before and thought that this would be a no brainer place to come and do a quick, easy beach vacation.”

American tourist Jim Beck told CNN he ventured outside his hotel in Puerto Vallarta to get breakfast on Sunday and saw “taxi cabs blown up all over town, blocking the roads.”

“Then immediately, everyone was running down the street, screaming and yelling, and they told everyone to get back to their hotels,” Beck said.

Mari, another tourist who asked to go by her first name for privacy reasons, said her young family had been sheltering in their vacation rental and watching the unrest unfold outside.

“We have two little kids, and it’s really scary,” she said. “The entire bay was just covered in fire,” she added. “For hours, there was just a billow of smoke, hovering. You could not see anything across.”

Another US tourist, Travis Dagenais, told CNN that he was woken up in Puerto Vallarta on Sunday morning by so many loud noises that he initially thought construction work was underway.

“We woke up this morning to a lot of what I thought was a building demolition,” Dagenais said.

It took him some time to figure out what was happening as reports of chaos gradually began to surface on social media, he said. Soon he could see the unrest unfold from his balcony.

“I was able to see quite directly, a little too visibly, some of the tactics and some of the cars that were being set on fire, some of the looting that was taking place as local stores and buildings were being attacked,” he said, adding the city “smells like burnt rubber at the moment.”

Dagenais said he and other tourists are currently beset by a raft of uncertainties.

“How long does this lockdown, so to speak, last? How long does the airport stay out of operation? What are some of the ways out? What (are) some of those answers, or just some of the plans we can make?” he wondered.

Dagenais added that most of his fellow tourists were dealing with the sudden chaos “with a certain degree of patience and understanding of things that are beyond the individual’s control.”

“I really hope that everybody in this

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