Market strategists see more pain ahead as a result of tariff-induced volatility. "We think it's too early to go bargain shopping," an investment chief wrote.

A private survey showed American factory activity last month edged closer to stagnation—slowing growth combined with faster inflation—as new orders and employment contracted. A gauge of prices paid for materials jumped to the highest since June 2022. So how should investors react to all this smoke on the horizon?