US equities dip as investors wait for trade deal updates, Mag 7 earnings
The post US equities dip as investors wait for trade deal updates, Mag 7 earnings appeared on BitcoinEthereumNews.com. This is a segment from the Forward Guidance newsletter. To read full editions, subscribe. After closing out last week in the green, stocks were back on the decline Monday as investors waited for more signs from the White House that trade deals are in the works. The forces that moved equities last week were 1) Trump’s confirmation that he would not look to fire Fed Chair Powell and 2) Treasury Secretary Scott Bessent’s comments on the “unsustainable” situation with China. So far today, we just haven’t seen similar optimism. Bessent, during a CNBC appearance this morning, put the ball in China’s court. “I believe it’s up to China to de-escalate, because they sell 5x more to us than we sell to them,” he said. “These 125% and 145% tariffs are unsustainable.” Unfortunately, I wouldn’t hold my breath. And I imagine traders feel the same way, given the S&P 500 and Nasdaq Composite indexes lost as much as 1.4% and 1.7%, respectively, intraday Monday. By 2 pm ET, both indexes had pared some losses but were still well below Friday’s close. The S&P 500 was trading down 0.5% at that time while the Nasdaq Composite had lost 0.8%. Another big focus this week will be earnings. Four of the Magnificent 7 companies will report this week: Microsoft and Meta on Wednesday, followed by Apple and Amazon on Thursday. In terms of tariff impact on these names, Apple’s reliance on its Chinese supply chain is the most concerning. I wrote about this a couple weeks ago, but I think it still applies, so I’ll say it again: If tariffs hit Apple, Trump is going to have a very big problem. My reasoning is that Apple is the largest company in the US, by market cap at least. If iPhones become 145% more expensive,…
The post US equities dip as investors wait for trade deal updates, Mag 7 earnings appeared on BitcoinEthereumNews.com.
This is a segment from the Forward Guidance newsletter. To read full editions, subscribe. After closing out last week in the green, stocks were back on the decline Monday as investors waited for more signs from the White House that trade deals are in the works. The forces that moved equities last week were 1) Trump’s confirmation that he would not look to fire Fed Chair Powell and 2) Treasury Secretary Scott Bessent’s comments on the “unsustainable” situation with China. So far today, we just haven’t seen similar optimism. Bessent, during a CNBC appearance this morning, put the ball in China’s court. “I believe it’s up to China to de-escalate, because they sell 5x more to us than we sell to them,” he said. “These 125% and 145% tariffs are unsustainable.” Unfortunately, I wouldn’t hold my breath. And I imagine traders feel the same way, given the S&P 500 and Nasdaq Composite indexes lost as much as 1.4% and 1.7%, respectively, intraday Monday. By 2 pm ET, both indexes had pared some losses but were still well below Friday’s close. The S&P 500 was trading down 0.5% at that time while the Nasdaq Composite had lost 0.8%. Another big focus this week will be earnings. Four of the Magnificent 7 companies will report this week: Microsoft and Meta on Wednesday, followed by Apple and Amazon on Thursday. In terms of tariff impact on these names, Apple’s reliance on its Chinese supply chain is the most concerning. I wrote about this a couple weeks ago, but I think it still applies, so I’ll say it again: If tariffs hit Apple, Trump is going to have a very big problem. My reasoning is that Apple is the largest company in the US, by market cap at least. If iPhones become 145% more expensive,…
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