2019/08/02

Stock Traders Have Theories About the Timing of Trump’s Tariff Tweet

F A day after posting its first 1% loss in two months, the S&P 500 posted its first 1% reversal of the year, with Thursday’s recovery from Jerome Powell’s press conference torpedoed by a Donald Trump tariff tweet.  To recap: stocks plunged Wednesday as Powell described the Federal Reserve’s rate cut as a “mid-cycle adjustment,” which traders interpreted as signaling fewer reductions. After bouncing back, equities tumbled anew when Trump said he would impose a 10% tariff on $300 billion in Chinese imports that aren’t yet subject to levies. Dutifully, traders of fed funds futures boosted the amount of easing they expect from the Fed this year after the tweet hit. -



read more