Global stock markets appear numb to Trump's 'reciprocal' tariffs. Here's why

[TheProle]

Global markets have largely been indifferent to U.S. President Donald Trump’s latest tariffs, a sharp departure from the steep selloff triggered by his April 2 announcement of “reciprocal” duties, as investors grow increasingly numb to what they see as a negotiating tactic.

snip

India, targeted in part over its continued purchases of Russian oil, saw its tariffs jump from an earlier 25% to 50% on Wednesday on a broad range of goods. The country’s benchmark Nifty 50 barely budged in response.

Similar resilience was seen in Europe, with the Stoxx 600 posting gains in recent days on corporate earnings, shrugging off the tariff threats.

“There is a bit of numbness coming through. I think there’s also a lot of precedent in terms of things being announced and then rolled back later,” said Steve Brice, global chief investment officer at Standard Chartered Bank’s wealth solutions unit.

“People are looking at the situation and saying, okay, yes, we’ve seen these increases in tariffs coming through… but they can be unwound by further trade negotiations. Therefore, it’s less of a shock to people now,” Brice told CNBC.

https://www.cnbc.com/2025/08/08/global-investors-become-numb-to-trump-amid-latest-trade-tariff-msci-stoxx-sp500-nifty-nikkei-salvos.html

[bearsfootball516]

1. So long story short, the markets don't react because they assume Trump is gonna TACO.

[Irish_Dem]

2. Abusers usually always instill a numb shock in their victims.

This makes the victims quiet, docile, and compliant.

[CrispyQ]

5. I'm in shock. When I read social media, others are in shock.

Nobody knows what to do, how to stop this. I already hardly go anywhere or buy anything. I am going to reach out to some local groups I found on Indivisible so I feel like I'm at least doing something. What else?

indivisible.org/groups

[Irish_Dem]

8. This is how the Chinese and Russian govts get their citizens so docile and compliant.

It is a shock and awe strategy.

[unblock]

3. Why don't they just say Donnie has zero credibility?

I know, I know, that's the media these days.

[BootinUp]

4. Krugman's article about this

https://www.democraticunderground.com/1016410881

[Wounded Bear]

6. The rest of the world is making deals with each other...

and cutting the US out wherever they can. Trump is making the US irrelevant on the world stage.

[wiggs]

7. No expert (just older), but there may be lots of reasons money is still in stocks, such as

...where else are people going to put their extra money?

...some people have lots and lots of money. Maybe after their 3rd home and other investments they aren't ready to pull their stock money because diversification?

...A lot of money managers are old school...let the top 1% make tons of money and it will trickle down

...apparently around 40% of the nation believe anything TSF says and are prepping for record wages, growth, happiness

...CEOs and boardmembers are not only seeing tons of profit, they are buying back stock?

...money flowing into stocks doesn't necessarily reflect faith in long term corporate growth and profits. Many trade the ups and downs...and after each downturn people put some money in, believing a bounce will help them. Volatility is opportunity to make money.

...it's gambling. people think they know how to win

...churning and selling/buying makes money for certain kinds of money managers. These types make less money if they tell their clients to just buy some CDs.

...the WH is trying to goose our economy to show favorable but short term numbers

...who the hell knows if we are headed for collapse or another year of stasis? Though knowledgable people say this can't work out well for most people, most people don't yet see the cliff. When the cliff becomes tangible that's maybe when the bottom falls out.

...stock market isn't the economy