While details are scarce, the Washington Post reported that the Trump administration is weighing a 20% duty on most imports into the U.S., though no final decision had yet been made.
“We remain Tactically Bearish” ahead of Wednesday, wrote traders at JPMorgan in a note. “We think the policy uncertainty is the dominant factor in the markets and that neither the Trump Put nor Fed Put activate in the near-term.”
The S & P 500 “may be nearing a point of being oversold in the immediate term and thus vulnerable to a quick rebound. However, any such move higher should be treated as an opportunity to sell as it remains extremely difficult to articulate a bullish fundamental case for this tape given the enormous headwinds facing the economy and earnings from Washington, including Trump’s destructive tariff agenda and the potential for tax hikes (beyond tariffs) as Republicans try and make their reconciliation math work,” Crisafulli added.