..on the technical front, S&P500 has tumbled below its previous recent low (March 10) and under 5,500 would suggest lower lows are ahead
..on the trade war front, I'm inclined to think that EU would respond by hitting the US digital space impacting most of the Mag7 stocks which would be very negative for the indices
..it won't surprise me if there could be responses over and above tariffs, which include trade restrictions/barriers especially from China.
,,another unintended consequence from this unleashed trade war is that China could start to diversify its exports to US to shift to dump in other countries bringing deflation to other countries. China could also do an equivalent (of what Trump did) to coerce Taiwan to restrict chip exports to US and to send them to China instead.
..my real concern is that this begins with tariffs and soon morphs into trade restrictions/barriers, boycotts, devaluations and other measures.
We can only hope rationality rules at the end of the day, but we will be living with greater uncertainty for much longer.
If there was any hope at all of a global economic recovery, this tariff has put paid to it. This is a big hit to consumer sentiment and confidence, businesses hit with increased costs and uncertainties, nothing good to come out of it.
