A Horror Week for Equities Has Investors Begging for Trump Respite

Equities are now teetering near -- and for blue chips, below -- levels seen at the worst point in February's volatility-fueled meltdown. At the epicenter this time is U.S. President Donald Trump, with his China tariffs driving Boeing Co. down more than 5 percent in a single session on Thursday and losses rippling across industries from technology to banks.

"Investors that have for months relied on Trump's pro-business rhetoric are now caught off guard," said Matt Maley, equity strategist at Miller Tabak & Co. "Trade tariffs are a big change and China's response can even get stronger. There isn't too much to be optimistic about: investors' concern associated with Trump's tariffs isn't going to be resolved neither next week nor the week after."

Consider this as a worrying sign of investor fragility: the S&P 500 has closed lower than the midpoint of its daily range for 10 straight days, the longest stretch since at least 1982. That suggests traders are finding reasons to dump shares in the afternoon rather than buy dips.

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With every sector trading in the red this week, investors had nowhere to hide. Concern over Trump's tariffs on $50 billion of Chinese goods roiled industrial and material companies. China has already hit back, unveiling its own levies on $3 billion of U.S. imports. And its ambassador to the U.S. wouldn't rule out the possibility of the Asian nation scaling back purchases of Treasuries in response.

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"The quiet days are now gone," said Stephen Carl, head trader at Williams Capital Group. "There are too many things investors have to be worried about."