Did the President Blink Again?

Markets rejoice at the latest carve-out of select Technology products from the tariffs

Highlights

• Markets rejoice at the latest carve-out of select Technology products from the tariffs

• But the flip-flop in policy is causing damage to confidence

• There are more earnings downgrades in the offing

• Bond markets are nearing a capitulation “buying” point

Key Takeaways

• Tech Tariff Relief Boosts Stocks: Investors are rejoicing over the latest carve-out from those reciprocal tariffs for a wide range of technology products — everything from smartphones, laptop computers, solar cells, hard drives, processors, flat panel TV displays, and the like. This came out of nowhere but clearly is a boost to tech giants, including Apple, Nvidia, Dell, and Microsoft (Apple was facing a huge crunch had there not been this latest about-face).