Can Stocks Rally in the Face of Tariff Threats?
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What’s in Today’s Report:
- Can Stocks Rally in the Face of Tariff Threats?
- Weekly Market Preview: Do Fed Rate Cut Expectations Change This Week?
- Weekly Economic Cheat Sheet: CPI on Wednesday is the Key Report
Futures are modestly higher despite more tariff threats as markets bounce following Friday’s decline.
President Trump announced he was imposing 25% tariffs on steel and aluminum imports and will apply “reciprocal” tariffs on numerous countries later this week.
Markets are shrugging off the announcements so far, however, because they again lack specific details.
Economically, there were no notable reports overnight.
Today focus will be on the New York Fed 1-Year Consumer Inflation Expectations (E: 3.0%), which is a bit atypical. On Friday, one year inflation expectations jumped but it was because of tariff concerns and as such, it’s not going to impact the Fed. However, if we see another jump in inflation expectations this morning, that may be taken as a mildly hawkish signal and boost yields and pressure stocks.
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