Nasdaq turns damaging. Here’s what's driving it

US shares had been flying larger earlier as we speak after Congress took a step in direction of passing a large company tax reduce however that is shortly circled with the Nasdaq and S&P 500 now each flat.

The drop might mirror excessive nervousness about Nvidia earnings as we speak but it surely’s exhausting to pin it on that provided that shares of NVDA are up 2.6% as we speak.

The flip appeared to come back after Trump’s cupboard press convention.

Right here is how Josh Wingrove at Bloomberg describes it:

The most recent on Trump’s tariff plans will depend on the way you learn what he mentioned as we speak.

He mentioned the US is about to announce a 25% tariff on the EU, however might have been referring to sectoral tariffs on autos, which he pivoted to.

And he signaled the Canada and Mexico tariffs poised to take impact subsequent week might get delayed and rolled right into a broader April 2 motion — however then demurred, and likewise mentioned it should be powerful to persuade him to increase subsequent week’s deadline. Markets interpreted it as a delay in these tariffs.

Broadly, he continues to sing the virtues of tariffs, crediting them amongst different issues with resulting in Apple’s newest US funding pledge.

Generally, I assumed Trump supplied extra good than dangerous information however he is been chaotic and the market is shedding its urge for food for the rollercoaster.

The bond market particularly seems to have had sufficient with fee reduce pricing for this 12 months as much as 57 bps from 40 bps two weeks in the past. The implied odds of a June reduce are as much as 83% from 45% every week in the past. Additional out, a robust bid in Treasuries continues together with in all this week’s auctions.

This text was written by Adam Button at www.ubaidahsan.com.



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