The Market Brief
Hey team. U.S. futures traded mostly flat during early trading on Tuesday as the Trump administration announced new duties on 14 countries and extended the “reciprocal” tariff deadline to Aug. 1.
Let’s see what’s ahead for this market!
Macro Viewpoint
To the surprise of absolutely nobody, the tariff headline rollercoaster is back this week, which was our expectation in our Sunday’s note —and it certainly saw a spike in volatility.
Main takeaways from y-days tariff announcements:
The deadline was pushed towards August 1st vs. July 9th
Announced new tariff levels (effective on August 1st) for 7 countries
Trump said that the tariffs on each country would be separate from any “sectoral” tariffs that he imposes
We should expect more deals/letters coming
Expect to see plenty of headlines continue to trickle in as the July 9th deadline was pushed out to Aug 1 to allow more time for negotiations.
So far, the US economy has held up under the threat of a spiraling global trade war.
The upcoming 2Q earnings season should provide investors with important insights on how companies are adjusting to increased tariff rates.
This is a free edition of the Market Brief. To receive our additional in-depth research and data analysis, please consider becoming a paid subscriber.
