SHOCKING MARKET MAYHEM: TRUMP’S TARIFF BOMBSHELL LOOMS!

Hold onto your wallets, folks! Just when you thought the stock market was in for a peaceful ride, it took a wild plunge yesterday morning, especially for those tech stocks that everyone loves to hate. Biotech shares, like Moderna and those crafty vaccine makers, were NOT spared the wrath after a senior FDA official threw in the towel, resigning over the weekend. It’s a rollercoaster of chaos!

THE DAY OF LIBERATION IS HERE!

Tomorrow, mark your calendars! It’s President Trump’s “Liberation Day”, and rumors are swirling faster than you can say “tariff”. The big guy is expected to unveil his trade policy that could throw the global economy into a tailspin. Wall Street is buzzing with memos, as analysts scramble to decode the impending chaos. Buckle up, because consensus is still murky at best! Here are the jaw-dropping predictions:

• Tariffs between 10-20%? Brace yourself! Most analysts think we’re looking at the lower end of that range. But hold on to your hats—charts are flying around comparing these shocking numbers to past levels!

• Immediate Tariffs Incoming! The largest trade offenders—China, the EU, Mexico, and more—are in the crosshairs. Executive privilege is about to be exercised, big time!

• Sector Tariffs Delayed… But Not for Long! Expect future tariffs on semiconductors, pharmaceuticals, and more, but the car industry gets a pass—at least for now.

  
• Softening Signals?! Could things be ease up for Mexico and Canada? Maybe! Compliant goods under the USMCA could escape the big tariff hammer.

But wait! Wall Street is scratching its head, unsure about whether tariffs will stack or if only the highest will apply. The mystery of non-tariff barriers? An open-ended question!

The consensus? Brace for impact! Tariffs could CRUSH equity earnings while sending the dollar soaring to dizzying heights. Forget the sunshine and rainbows—get ready for stormy skies!

WEALTHY SPENDERS BRACE FOR IMPACT!

Here’s the scoop: the rich ARE the economy! The top 10% of earners are responsible for HALF of consumer spending. Thanks to skyrocketing stock and home values post-pandemic, they’re flexing their financial muscles!

But hold your horses! Signs of wealthy consumers tightening their purse strings are appearing. A recent survey showed a steep decline in spending sentiment among the affluent. Will it lead to a recession if they pull the brakes?

With the top 10% owning a staggering 87% of all stocks, it’s not hard to say their financial fumble can shake the groundwork of consumer spending. They’ve lost $2.7 trillion since Trump’s election—YIKES! Are they set to curtail their lavish lifestyles?

However, let’s keep it in perspective: despite recent turmoil, the top tier still holds onto solid liquid assets. Historically, even during stock market downturns, the wealthy continued splurging!

Could the rich be suffering now? Sure, but they might have the buffer to weather this storm. The question remains—if the market takes another hit, will rich consumers tighten their belts? For now, it seems they’re still ready to spend!

MISTAKE ALERT: CORRECTION ON PCE DATA!

On another note, yesterday’s report mistakenly claimed a core PCE inflation rise of 4%. Correction: it was actually 0.4%. Oops! That’s still the highest monthly jump since January 2024, so keep your eyes peeled!

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Treasure those wallets, folks—the coming days promise to be anything but dull! Stay tuned for the fallout!

photo credit: www.ft.com