U.S. stock markets hit following President Trump’s announcement of new tariffs on key trading partners, with many tariff-sensitive stocks seeing increased volatility. Some traders have built “baskets” of tariff-sensitive stocks, allowing them to bet on the impact of trade policies across multiple companies. Hedge funds are shorting certain European stocks exposed to tariffs, such as Mercedes-Benz and BMW. Options market activity has surged, with traders seeking to hedge against rapid reversals or predict Trump’s next move. On Friday, zero-day options trading hit a record $1.4 trillion in notional value.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02U.S. stock markets took a hit following President Trump's announcement of new tariffs on key
00:06trading partners, with many tariff-sensitive stocks seeing increased volatility. Some traders
00:11have built baskets of tariff-sensitive stocks, allowing them to bet on the impact of trade
00:16policies across multiple companies. Hedge funds are shorting certain European stocks
00:20exposed to tariffs, such as Mercedes-Benz and BMW. Options market activity has surged,
00:25with traders seeking to hedge against rapid reversals or predict Trump's next move.
00:30On Friday, zero-day option trading hit a record $1.4 trillion in notional value.