Overview
- The S&P 500 has fallen 2.6% since President Trump announced sweeping tariffs on April 2, while global markets have shown relative strength.
- Treasury Secretary Scott Bessent contradicted Trump's claims of active trade talks with China, stating Beijing must take the first step to de-escalate tensions.
- The Atlanta Federal Reserve's GDPNow model projects a Q1 economic contraction, raising concerns of a broader slowdown exacerbated by trade policies.
- Shipping flows between China and the U.S. have dropped by over 60%, signaling significant supply chain disruptions and potential repercussions for businesses and consumers.
- Investors are closely watching upcoming corporate earnings, particularly from major tech firms, and economic indicators like GDP and employment data to assess the tariffs' impact.