It's just another TACO Tuesday

Trump backs up (again) on his tariff threats to the EU

Highlights

• Trump backs up (again) on his tariff threats to the EU

• Consumer confidence level remains at dismal levels

• Canada’s labor market is screaming recession

• Growing inequality makes the case for a lower R-star

Key Takeaways

• Priced for Zero Rates: U.S. equity futures are down modestly, while the Euro Stoxx 50 benchmark is flat, and Asia is broadly mixed. At a 21x forward P/E multiple, S&P 500 valuations are trading as though we are back to 2020-2021 interest rate levels when the 10-year T-note yield was below 1.0% and the Fed funds rate was pinned to the zero lower bound.