Billionaire Hedge Fund Manager Predicts Stock Market Lows Amid Tariff Concerns

DAVOS, Switzerland — Billionaire hedge-fund manager Paul Tudor Jones warned on Tuesday that the stock market is likely to hit new lows, regardless of any tariffs reductions by President Donald Trump on China. Speaking on CNBC’s “Squawk Box,” Jones stated, “For me, it’s pretty clear. You have Trump who’s locked in on tariffs. You have the Fed who’s locked in on not cutting rates. That’s not good for the stock market.”

Jones believes that even a reduction of tariffs to 50% by Trump would not prevent a decline. “We’ll probably go down to new lows, even when Trump dials back China to 50%.” This statement comes after significant volatility in the stock market, which has yet to stabilize following Trump’s imposition of high tariffs on Chinese imports, sending the S&P 500 down but allowing for some recovery.

Investors are still jittery after the U.S. trade deficit hit a record of $140.5 billion in March, showing a 14% increase in imports as businesses and consumers rushed to buy goods in anticipation of the tariffs. The decline in exports, coupled with high tariffs from both the U.S. and China, contributes to uncertain market conditions.

In a separate update, Wall Street futures dipped as the market awaits a decision from the Federal Reserve regarding interest rates. Analysts expect the Fed to maintain current rates, with speculation around Jerome Powell’s comments on the economic outlook adding to the tension. Futures for the S&P 500 fell 0.9%, Dow futures are down 303 points, while Nasdaq-100 futures decreased by 1.2%.

Despite some positive signals in service sector activity reported by the Institute for Supply Management, concerns about potential tariffs continue to linger. As trade discussions between Trump and Canadian Prime Minister Mark Carney unfold, market dynamics remain under scrutiny.

Jones, who gained recognition for predicting the 1987 stock market crash, remains skeptical about current market conditions. He emphasized that macroeconomic factors are not in favor of recovery, suggesting that unless the Fed takes more aggressive action, the market is poised for further declines.

“Unless they got really dovish and really, really cut, you’re probably gonna go to new lows,” said Jones. “And then when we’re at new lows, the hard day will start to follow, and it’ll probably create the Fed to move, create Trump to move. And then we’ll get some kind of reality.”