Weekly Wrap Up - Jitters as Tariff Risks Return
U.S. Equities: Broad Pull-back as Tariff Risks Return
The U.S. had a rough stretch. After a run of relative calm, markets tumbled late in the week when new tariff threats stirred up fears again. The S&P 500 dropped 2.7%, the Nasdaq lost 3.6%, and even more defensive names weren’t spared.
Tech and high-growth names were among the hardest hit, as expectations for future earnings came under pressure. The risk premium rose.
Overall, for the week, all major U.S. indices finished lower with the S&P down 2.4%, the Dow 2.7%, Nasdaq 2.5%.
Australia: Slight Gains, Underlying Weakness
Australia’s share market ended the week mildly in the green with the ASX 200 gained 0.58% over the week.
But that headline masks some cracks: materials and mining names (especially iron ore exporters) were under pressure, thanks to weak demand signals from China.
The upside was kept alive by pockets of strength in non-cyclical sectors and resilience in domestic-oriented names.
New Zealand: Holding Steady, Watching the Signals
New Zealand’s share market had a relatively tame week. The NZX 50 lifted 0.7% in one snapshot, getting a boost from gains in health services, industrials, and distribution stocks.
Still, things were quietly choppy: some sessions saw modest pullbacks ahead of key domestic announcements and rate decisions. Investors are also watching how U.S. tariff news filters through to NZ export-linked names.
The Tariff Factor is Still Hanging Over Everything
That resurgence of tariff talk in the U.S. was a clear mood changer. Markets are weary of policy surprises, and tariffs cut both ways they can choke export growth or raise costs in supply chains.
A sudden policy move or escalation can spook investors, especially in sectors tied to trade or global supply chains. That’s what likely ignited the late-week swoon in U.S. markets.
What This Means for KiwiSaver Investors
If Your Fund Has Lots of U.S./Global Growth Exposure
You probably felt the pain this week. Funds heavily tilted to U.S. tech/growth are vulnerable to sharp swings when tariff risk returns. That said, currency movements can buffer or intensify the impact depending on hedging strategy.
If You Hold NZ Shares in Your KiwiSaver
It’s a double-edge. On one hand, NZ-domestic names may be less volatile than high-growth U.S. stocks. On the other, any hit to export demand or ripple effects from tariffs (especially for producers, exporters, supply chain-exposed firms) can weigh on those stocks.
Defensive Tilt & Active Management Become More Useful
Funds that can shift exposure quickly, reduce risk ahead of bad surprises, or tilt into safer/low-volatility sectors have a leg up in weeks like this.
If your unsure have a chat
Week-to-week swings can tempt investors to jump out at bad times, but that locks in losses. Use volatility as an opportunity to review your allocation, not panic.
Disclaimer: No part of this article is intended as financial advice; it is intended as general information only. To see our Financial Advice Provider Disclosure Statement, please see our “Disclosure Statement” below. Past performance is not indicative of future performance.