What’s in Today’s Report:
- What Trump’s Tariff Threats Mean for Markets
- Updated Market Outlook (Beyond Tariffs/Trade)
- Weekly Market Preview
- Weekly Economic Cheat Sheet (All About Inflation)
Futures are sharply lower after President Trump renewed tariff threats against China, putting the expectation for a U.S./China trade deal in doubt.
President Trump threatened to increase tariffs on Chinese imports to 25% on 200 billion this Friday if a trade deal is not complete.
Outside of trade, economic data was mixed. Chinese composite PMI declined (52.7 vs. (E) 52.9) while Euro Zone composite PMI and retail sales slightly best estimates.
Today there is one Fed Speaker: Harker (9:30 a.m. ET) but obviously the focus of markets will be on any trade updates. As of this writing, the Chinese trade delegation is still coming to the U.S. for more negotiations this week. If that is cancelled, look for stocks to take another leg lower. Conversely, if it’s announced Chinese Vice-Premier Liu He is attending the talks, that will be a positive.
From a technical standpoint, 2890 in the S&P 500 is notable support and if that’s broken, selling could accelerate.