Two Reasons Markets Have Been So Resilient YTD
What’s in Today’s Report:
- Two Reasons Markets Have Been So Resilient YTD
- Weekly Market Preview: Focus on the Fed (Will They Hint at Rate Cuts Later in the Year?)
- Weekly Economic Cheat Sheet: More Growth and Inflation Updates
Futures are modestly weaker but have rebounded from steep overnight declines, as more political/policy volatility is weighing on futures.
Government shutdown risks spiked over the weekend following another incident with ICE, while separately, President Trump threatened 100% tariffs on Canada.
Economically, the only report was German Ifo Business Expectations and it slightly missed estimates.
Today focus will be on Washington via rising government shutdown risks and the tariff threats on Canada. Any headlines that make a shutdown seem more likely or that tariff threats will actually go through will weigh on markets, while deescalation on both will help fuel a rebound.
Outside of Washington political volatility, there is one economic report today, Durable Goods (E: 3.1%) and some earnings, STLD ($1.72), BKR ($0.67), NUE ($1.82), but they shouldn’t move markets.
