MILWAUKEE — The financial markets didn’t drop as much on Monday, but they remained volatile as President Trump’s tariffs continue to create uncertainty.
Chief Political Reporter Charles Benson talked with Marquette students about the tariffs and the market sell-off.
Marquette Professor Margaret Hughes-Morgan has seen market volatility before during her days on Wall Street and now while teaching about finance in the classroom.
She knows markets don’t like one thing: "They hate uncertainty."
What makes this downturn different from the pandemic in 2020 or the financial crisis of 2008 is that it’s viewed as more self-inflicted, with a dramatic change in policy on tariffs and what that means for businesses’ bottom lines.
"It’s not clear whether those earnings are going to go down 20 percent. The tariffs were 35 percent; generally, people think it could have a 20 percent hit, which means the stocks have to go down 20 percent in order to align with the tariffs," said Professor Hughes-Morgan. "So that’s what’s causing most of the volatility in the market."
Watch: Why tariffs rattle markets and what Marquette business students are learning about them in real time
At Marquette, sophomore Grant Bauman can watch market movements in real time from inside the business school’s lab. All of it has caught his attention.
"It’s all reactionary," said Bauman. "It’s like, 'hey, this is my take based on these tariffs affecting this company and our suppliers.'"
History indicates this will not be the last time senior Colby Kruse sees a downturn.
But he’s learning about market risk.
"I think the experience—having lived through it—brings a lot of value to people I have talked to."
History shows that markets eventually find their footing and recover. In 1987, when the Dow lost 22 percent in one day, it had recovered most, if not all, of those losses a year later.
It’s about time to watch on your time. Stream local news and weather 24/7 by searching for “TMJ4” on your device.
Available for download on Roku, Apple TV, Amazon Fire TV, and more.
