...why this? De-coupling of correlation of other markets from US.
...not just the tariffs
...largely the mistrust and the increasing belief that the AI boom is ending with reduced AI capex going forwards [which explains the bear market that Mag7 has entered]
Bank and oil stocks lifted Dow from an intraday -400+pts drop to close up +417pts reclaiming the 42k handle but it was the tech stocks that mattered. Nasdaq closed -0.14% lower from a -500pt drop intraday while S&P500 was up ++0.55% to 5611.
Gold added another $40 pr +1.3% to $3124 while AUD Gold +1.94% to $4,999,99 as I write; GDX and GDXJ were +0.88% and +0.62% respectively.
Other resource stocks from copper to coal, lithium, silver, uranium, rare earths were broadly lower.
Every pundit right now is saying that hard economic data is not supporting the "soft" (survey) data. That's because the hard data is lagged and the survey data is real time. Every recession has started with forecasters looking in the rear view mirror to guess the economy and then being shocked when they are wrong. Investors also forget that the Tech bubble implosion in Y2K caused a recession. Why? Because the ludicrous amount of capital being wasted on Tech imploded. https://x.com/SuburbanDrone/status/1906743111331799175
...speaks volume that Japan and SKorea had to seek the Chinese umbrella to fire back.
...since when has Japan done that with China?
...why is it that I am thinking that perhaps the amount of tariff revenues Trump could raise wouldn't add much when offset against the reciprocal tariffs and boycott backlash on US goods&services that US businesses would have to endure.
...I am sure US businesses and consumers would rather see a domestic sales tax and consumption tax instead - because that's what tariffs are in disguise
...but the President loves playing 'Battleship' (game) to show the world who's boss.
...the bigger price to pay is in the later years when everyone is done with America
BREAKING: China, Japan and South Korea will jointly respond to US tariffs as President Trump's April 2nd reciprocal tariff day nears, per Reuters. Mexico has already announced that a response is coming as soon as April 3rd. Reciprocal tariffs on reciprocal tariffs are coming next.
