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2w ago

Markets Rattle as China's Tariff Hike Deepens Trade Conflict and Inflation Data Falls Short

U.S. markets face heightened volatility with a steep tariff escalation, cooling inflation, and key bank earnings reports driving investor uncertainty.

The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019. REUTERS/Chris Helgren/File Photo
India's benchmark indices in the stock market surged nearly 2 per cent after Trump announced a 90 day pause on US tariffs
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Overview

  • China has raised tariffs on U.S. goods to 125%, intensifying the trade dispute and leading to market instability.
  • March inflation data showed the Consumer Price Index falling to a six-month low of 2.4%, with a monthly decline of 0.1%, the first since May 2020.
  • Investors are closely monitoring Q1 earnings reports from major banks, including JPMorgan Chase and Morgan Stanley, for insights into economic and credit conditions.
  • The Federal Reserve's future policy path remains uncertain, with some analysts predicting potential rate cuts in June based on cooling inflation trends.
  • The U.S. dollar has dropped to a near two-year low as escalating trade tensions drive investors toward alternative currencies like the euro and Swiss franc.