For weeks the main focus for investors has been how Trump's wide reaching tariffs will impact economic growth, fearing a recession.
Category
🤖
TechTranscript
00:00For weeks, the main focus for investors has been how Donald Trump's wide-reaching tariffs
00:05will impact global economic growth, with fears mounting that recession could strike.
00:10That narrative just got its latest big development.
00:12Wild swings in the market continued on Wednesday as the global trade war was largely put on hold.
00:18After opening lower, the S&P 500 quickly reversed and ultimately spiked more than 7%
00:24after President Trump paused tariff hikes on non-retaliating countries.
00:28The inflation report at 8.30 a.m. Eastern on April 10th will be the next major input for the stock market.
00:34Here are a couple of likely scenarios.
00:36If inflation comes in cooler than expected, this would be a positive for the prospect of rate cuts,
00:41which would stimulate the economy. This would likely elicit a positive reaction.
00:45If inflation comes in hot, this would hamstring the Fed's ability to cut interest rates,
00:50further adding to economic growth concerns and worries that the central bank's hands are tied.
00:55This would likely be stocks negative.
00:57After the dust settles on the inflation report,
01:00Trump's guidance on tariffs will be key going forward.