The Market Brief
Hey team. Equities pulled back during early trading on Thursday as escalating trade tensions and growing geopolitical unease prompted a broader risk-off mood across global markets.
Let’s see what’s ahead for the markets!
Impact Snapshot
🟥 PPI Inflation - 8:30am
🟥 Unemployment Claims - 8:30am
🟧 30-y Bond Auction - 1:01pm
Macro Viewpoint
S&P 500 futures slipped 0.6%, setting the US benchmark up for its first consecutive loss this month.
US President Donald Trump signaled plans to impose unilateral tariffs on numerous US trading partners in the coming weeks. Meanwhile, market nerves were further frayed by escalating tensions in the Middle East.
Yesterday we saw large SPX downside bought in put spread format out to August and September. We also saw VIX downside being bought in size. Following the headlines out of Iraq, the market sold off and the VIX spiked above 18.
US CPI surprised to the downside again last month. Any upward pressure from tariffs still looks to be limited in the aggregate, with mixed changes in more tariff-sensitive sectors.
We still think it may be early to see signs of a sizable pass-through of tariffs into consumer prices, and look for firmer readings by the summer months.
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.
Develop better context and create a robust entry model by understanding all the market nuances we share on a daily basis. This will help you build the market understanding that most traders lack.