The question in the market is whether 'reciprocal but not reciprocal' tariffs will go into effect at midnight along with 50% tariffs on China and there were many betting Trump would back off. There is no evidence of that yet.
I would argue that even if we go back to 10% across-the-board tariffs, then we still have a problem in the economy, likely retaliation and too many rate cuts priced in.
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