What we’re reading (4/10)
“Stocks Dive Again As Angst Rises Over Trump’s Trade War” (New York Times). “The S&P 500 tumbled 3.5 percent on Thursday, signaling renewed investor concern about the worsening trade war with China and the destabilizing effects of President Trump’s tariff policies. One day after the stock market had its best day since 2008 as it reacted to Mr. Trump’s decision to postpone many of his tariff plans for three months, Thursday saw a significant portion of those gains wiped away. Early Thursday, the president clarified that he had raised tariffs on Chinese goods by a total of 145 percent since taking office.”
“How The Bond Market Helped Make Trump Blink On Tariffs: ‘I Was Watching It.’” (Yahoo! Finance). “President Trump hit the pause button on reciprocal tariffs — and the bond market convinced him. In the lead-up to the president's pivot, markets were unraveling: Stocks slid sharply, with the S&P 500 on the brink of a bear market. But the real alarm bell? A sharp, unexpected surge in long-term Treasury yields — a move that seemed to force the president’s hand. ‘The bond market is very tricky. I was watching it,’ Trump admitted to reporters shortly after the announcement. ‘People were getting a little queasy.’”
“The U.S. And China Are Going To Economic War—And Everyone Will Suffer” (Wall Street Journal). “Many businesses had begun to adjust to a reality of higher tariffs that started during the first Trump administration. But if the new tariffs remain, they face a loss of access to Chinese production altogether—with profound changes for American consumers. Americans, already stressed from a 24% rise in prices over the past five years, could end up paying even more for a smaller selection of everyday goods. Many businesses had begun to adjust to a reality of higher tariffs that started during the first Trump administration. But if the new tariffs remain, they face a loss of access to Chinese production altogether—with profound changes for American consumers. Americans, already stressed from a 24% rise in prices over the past five years, could end up paying even more for a smaller selection of everyday goods.”
“Retail Investors Are Running Head First Into This Topsy-Turvy Market” (CNBC). “Institutional investors ran for the hills during that week, causing the S&P 500 to briefly dip into bear market territory, which refers to a 20% drop from recent highs. But data from market insights firm Vanda Research, a trusted authority on retail investor trends, showed mom-and-pop traders…doing the exact opposite. ‘What marks an equity drawdown? It’s usually retail capitulation as the final shoe to drop,’ said Marco Iachini, vice president of research at Vanda. ‘We’re clearly not seeing that.’”
“Robot Rogue Traders Could Rule World And Make Bankers Even Richer, Experts Warn” (The Daily Star). “Bots are increasingly being used by financial companies hoping to develop new investment strategies, cut down on dull administrative tasks and automate decision-making around loans. A recent International Monetary Fund report showed more than half of all patents - new financial plans - produced by trading firms are related to AI.”
