Fidelity 500 (FXAIX) Takes a Hit from Ongoing Tariff Wars

With the global markets all stirred up over political tensions, Fidelity 500 Index Fund has shown some wild swings, especially because of the U.S.-China tariff war. Since early 2025, the index has dropped quite a bit, sitting at around $173.01 after a recent 1.57% dip. This comes after a stretch of ups and downs, with indicators like the 20-day and 50-day moving averages showing a downward trend that’s got investors feeling uneasy.

The trade fight over issues like trade practices and intellectual property is leading to higher prices for everyday items and messing with supply chains. As tariffs rise, U.S. manufacturers are seeing profit margins getting tighter, which means they either have to raise prices or eat the extra costs—something that ultimately affects consumers. The uncertainty in these trade relationships has made many investors cautious, pushing them toward safer investments.

Experts are saying that the recent drop in the S&P 500 could mean bigger issues for the economy. A lot of U.S. companies, especially those in tech and manufacturing, depend on Chinese supply chains and market access. With talks between the two countries still shaky, it’s a good idea for investors to stay alert and watch for news about trade discussions that could either settle things down or make matters worse.

In this unpredictable environment, the future looks unclear, highlighting how global trade relationships are tied to market stability.