Indeed, an escalation into a trade war could reduce future growth expectations and equity valuations, according to UBS equity strategists, with investors saying the full risks of the tariffs had yet to be priced into the market.
The potential for tariffs also fed into concerns about rising inflation, one of the factors that set off the market's recent 10 percent correction.
Even as stocks bounced back from that slide, they have found renewed volatility after months of relative calm, with the tariff developments and Cohn's departure the latest news to spark swings and lead investors to question whether the decline is over.
The stock market tested major support levels "a few days ago and it was a good test: Half of the gains were wiped out and it bounced from there," said Alan Lancz, president of investment advisory firm Alan B. Lancz & Associates in Toledo, Ohio. "We’re going to experience that again today and tomorrow. We’ll see what happens."
This article was provided by Reuters.